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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 Transportation costs. Electronic processing Office support Total Activity Cost Expected Controller Services Usage 35,000 miles Cost Driver Expected Tax Services Usage $ 50,000 Mileage 5,000 miles $ 75,000 Processing hours $ 20,000 Administrative hours 20,000 hours 30,000 hours 3,500 hours 1,500 hours Required: Using activity proportions, determine the amount of overhead assigned to Controller Services. Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Transportation costs Electronic processing Office support Total Overhead $ 25,000 71,430 x 6,000 $ 102,430
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