Question
Gant Accounting performs two types of services, Audit and Tax. Gants overhead costs consist of computer support, $291000; and legal support, $145500. Information on the
Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $291000; and legal support, $145500. Information on the two services is:
Audit
Tax
Direct labor cost
$50000
$100000
CPU minutes
40000
10000
Legal hours used
200
800
Overhead applied to tax services using activity-based costing is
a) $145,500
b) $174,600
c) $261,900
d) $291,000
| Audit | Tax | |
| Direct labor cost | $50000 | $100000 |
| CPU minutes | 40000 | 10000 |
| Legal hours used | 200 | 800 |
Overhead applied to tax services using activity-based costing is
a) $145,500
b) $174,600
c) $261,900
d) $291,000
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
