A service company provides three types of services: consulting, training, and auditing. The following information is available:

• Total overhead costs: $100,000
• Activity cost drivers and rates:
  • Number of consulting hours: $50 per hour
  • Number of training sessions: $200 per session
  • Number of audits conducted: $500 per audit
• Activity levels:
  • Consulting hours: 1,500 hours
  • Training sessions: 100 sessions
  • Audits conducted: 50 audits

1. Calculate the overhead cost allocated to each service using ABC. b. Determine the total cost of each service. c. Discuss the advantages and disadvantages of using activity-based costing for this service company.