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so COVID 19, an accounting form, provides consulting and tax planning services for many years, the forms total administrative St (currently $210.000) has been allocated

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so COVID 19, an accounting form, provides consulting and tax planning services for many years, the forms total administrative St (currently $210.000) has been allocated to services on the basis of billable hours to clients. A recent analysis found that 8% of the firm's billable hours to clients resulted from tax planning services, while 8% resulted from consulting services The firm,contemplating a change to activity based costing. has identified three components of administrative cost, as follows Staff Support $200,000 In house computing charges Sood Miscellaneous office costs 20.000 Total $220.000 A recent analysis of staff support found a strong correlation with the number of clients served in contrast, in house computing and miscellaneous office cost and directly with the number of computer hours logeed and number of client transactions, respectively Consulting clients served totaled 20% of the total dient base, consumed yo'l of the forniscomputer hours, and accounted for us of the total client transactions If the firm switched from its current accounting method to an activity based costing system, the amount of administrative cost chargeable to tax planning services would Select one a decrease by $59.500 b. decrease by $58.000 c decrease by $32.500 d decrease by 586,500 QUESTION 27 Not yet annered CONVID 19 Co has provided the following data from its activity based costing system Pra question Activity Cost Pool Total Cost Total Activity Assembly $1.443.140 59.000 machine hours Processing orders 180.sos 2.7 orders Inspection $145.733 1. inspection hours The company makes 890 units of product YB a year, requiring a total of 2.070 machine hours. 41 orders and inspection hours per year. The producedirect.com unit and its direct labor cost is $22.67 per unit. The product sells for $147 perunt. According to the activity based costing system, the product magn for products Round your Intermediate calculations and final answers to 2 decimal places) Select one a $4.560 38 b$5.45038 Oc$7.730,38 Od 56,340 38

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