Gant Accounting performs two types of services, Audit and Tax.Gant's overhead costs consist of computer support, $300,000; and legal support, $150,000.Information on the two services is: $$\begin{array} { l r r }
& { \text { Audit } } &{ \text { Tax } } \
\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \
\text { CPU minutes } & 40,000 & 10,000 \
\text { Legal hours used } & 200 & 800
\end{array}$$ Gant Accounting performs tax services for Cathy Lane.Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used.What is the total cost of the Lane job using activity-based costing?

Question

Gant Accounting performs two types of services, Audit and Tax.Gant's overhead costs consist of computer support, $300,000; and legal support, $150,000.Information on the two services is: $$\begin{array} { l r r } 
& { \text { Audit } } &{ \text { Tax } } \
\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \
\text { CPU minutes } & 40,000 & 10,000 \
\text { Legal hours used } & 200 & 800
\end{array}$$ Gant Accounting performs tax services for Cathy Lane.Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used.What is the total cost of the Lane job using activity-based costing?

Quizplus · Accepted Answer

The Answer of Gant Accounting performs two types of services, Audit and Tax.Gant's overhead costs consist of computer support, $300,000; and legal support, $150,000.Information on the two services is: $$\begin{array} { l r r } 
& { \text { Audit } } &{ \text { Tax } } \
\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \
\text { CPU minutes } & 40,000 & 10,000 \
\text { Legal hours used } & 200 & 800
\end{array}$$ Gant Accounting performs tax services for Cathy Lane.Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used.What is the total cost of the Lane job using activity-based costing?

Gant Accounting Performs Two Types of Services, Audit and Tax