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AJ Accounting performs two types of services, Audit and Tax. AJ's overhead costs consist of computer support, $200,000; and legal support, $100,000. Information on the

AJ Accounting performs two types of services, Audit and Tax. AJ's overhead costs consist of computer support, $200,000; and legal support, $100,000. Information on the two services is: Audit Tax Direct labor cost $50,000 $100,000 CPU minutes 40,000 10,000 Legal hours used 200 800 Overhead applied to audit services using traditional costing is A) $100,000. B) $120,000. C) $180,000. D) $200,000. Overhead applied to tax services using activity-based costing is A) $100,000. B) $120,000. C) $180,000. D) $200,000

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