Question: A consulting firm provides services with three complexity levels: Basic, Intermediate, and Advanced. The company incurs overhead costs of $1,000,000, allocated based on the following

A consulting firm provides services with three complexity levels: Basic, Intermediate, and Advanced. The company incurs overhead costs of $1,000,000, allocated based on the following cost drivers:

Basic: Number of clients (300 clients)

Intermediate: Number of transactions (600 transactions)

Advanced: Number of projects (100 projects) Allocate the overhead costs to each service using activity-based costing.

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