Question
Gant Accounting performs two types of services, Audit and Tax. Gants overhead costs consist of computer support, $300000; and legal support, $151500. Information on the
Gant Accounting performs two types of services, Audit and Tax. Gants overhead costs consist of computer support, $300000; and legal support, $151500. 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 traditional costing is
|
| $181200. |
|
| $301000. |
|
| $270300. |
|
| $150500. |
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Financial Accounting
Authors: Bev Vickerstaff, Parminder Johal
1st Edition
1444170414, 978-1444170412
