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Sunrise Accounting provides basic tax services and rent-a-controller accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for
Sunrise Accounting provides basic tax services and rent-a-controller accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool.
Activity | Total Activity Cost | Cost Driver | Expected Tax Services Usage | Expected Controller Services Usage | ||||||||
Transportation costs | $ | 50,000 | Mileage | 5,000 | miles | 35,000 | miles | |||||
Electronic processing | 75,000 | Processing hours | 20,000 | hours | 30,000 | hours | ||||||
Office support | 20,000 | Administrative hours | 3,500 | hours | 1,500 | hours | ||||||
Barry Gold, a tax client of Sunrise Accounting, requires 20 miles of transportation, 50 hours of processing time, and 3 hours of office support, determine the amount of overhead assigned to Barry Gold. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest dollar amount.)
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