1.Port Accounting performs two types of services, Audit and Tax. Port's overhead costs consist of computer support,...
Question:
1.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 labour cost: $50,000 $100,000
CPU minutes: 40,000 10,000
Legal hours used: 200 800
Overhead applied to audit services using ABC is
a.$120,000.
b.$144,000.
c.$216,000.
d.$240,000.
2.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 labour cost: $50,000 $100,000
CPU minutes: 40,000 10,000
Legal hours used: 200 800
Overhead applied to audit services using traditional costing is
a.$120,000.
b.$144,000.
c.$216,000.
d.$240,000.
1.CinRich Corporation recorded operating data for its Waterhole division for the year. CinRich requires its return to be 9%.
Sales: $500,00
Controllable margin: 90,000
Total average assets: 300,000
Fixed costs: 30,000
Residual income: 50,000
How much is ROI for the year?
a.10%
b.16.7%
c.20%
d.30%
Explain in a step by step fashion why these answers are correct.
Expert Answer:
1 Overhead applied to audit services using ABC To calculate overhead applied using ActivityBased Cos... View the full answer
