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What the overhead applied to audit services

    Assignment Instructions

    Assignment ID: FG133140512

    Question – Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $327000; and legal support, $163500. Information on the two services is:

     

    Audit

    Tax

    Direct labor cost

    $50000

    $100000

    CPU minutes

    40000

    10000

    Legal hours used

    200

    800

    Required – What the overhead applied to audit services using activity-based costing?

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