1. Port Accounting performs two types of services, Audit and Tax. Ports overhead costs consist of computer support, $240,000; and legal support, $120,000. Information on the two services is:

	Audit	Tax
Direct labour 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

1. $120,000.
2. $144,000.
3. $216,000.
4. $240,000.