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Waterway Accounting performs two types of services, Audit and Tax. Waterway's estimated overhead costs consist of computer support, $288000; and legal support, $141000. Information on
Waterway Accounting performs two types of services, Audit and Tax. Waterway's estimated overhead costs consist of computer support, $288000; and legal support, $141000. Information on the two services and their estimated use of cost drivers is as follows: Audit Direct labor cost $50000 $100000 CPU minutes 40000 10000 Legal hours used 200 800 Waterway Accounting performs tax services for Cathy Lane. Direct labor cost is $1200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using ABC? $3456 $3597 O $5256 $4797
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