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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.
ActivityTotal Activity CostCost DriverExpected Tax Services UsageExpected Controller Services UsageTransportation costs$ 128,000Mileage8,000miles56,000milesElectronic processing$ 172,500Processing hours23,000hours34,500hoursOffice support$ 123,500Administrative hours4,550hours1,950hoursRequired:
Using activity proportions, determine the amount of overhead assigned to Controller Services.
transportation costs:
electronic processing
office support
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