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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
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 Expected Tax Expected Controller Cost Driver Services Usage 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 Administrative $ 20,000 3,500 hours 1,500 hours hours M4-15 (Static) Assigning Costs Using Activity Proportions for a Service Company [LO 4-4,4-7] Required: Using activity proportions, determine the amount of overhead assigned to Controller Services. Note: Do not round intermediate calculations. Answer is not complete. Transportation costs Electronic processing Office support Total Overhead $ 35,000 x $ 35,000
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