Port Accounting performs two types of services, Audit and Tax. Port's overhead costs consist of computer support,
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Port Accounting performs two types of services, Audit and Tax. Port's overhead costs consist of computer support, $240,000; and legal support, $120,000. Information on the two services is:
| Audit | | Tax |
Direct labor cost | $50,000 | $100,000 |
CPU minutes | 40,000 | 10,000 |
Legal hours used | 200 | 800 |
Port Accounting performs tax services for Cathy Kane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Kane job using activity-based costing?
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