Question: A consulting firm provides services with three complexity levels: Basic, Intermediate, and Advanced. The company incurs overhead costs of $900,000, which it allocates based on

A consulting firm provides services with three complexity levels: Basic, Intermediate, and Advanced. The company incurs overhead costs of $900,000, which it allocates based on the following cost drivers:

Basic: Number of clients (estimated at 400 clients)

Intermediate: Number of transactions (estimated at 800 transactions)

Advanced: Number of projects (estimated at 150 projects) Allocate the overhead costs to each service using activity-based costing with complexity levels and transaction drivers.

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