Question
Gant Accounting performs two types of services, Audit and Tax. Gants overhead costs consist of computer support, $324000; and legal support, $162000. Information on the
Gant Accounting performs two types of services, Audit and Tax. Gants overhead costs consist of computer support, $324000; and legal support, $162000. 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
|
| $162000. |
|
| $194400. |
|
| $291600. |
|
| $324000. |
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Accounting Theory
Authors: Ahmed Raihi-Belkaoui
5th Edition
1844800296, 978-1844800292
