Question: A consulting firm provides services with two complexity levels: Basic and Advanced. The company incurs overhead costs of $600,000, which it allocates based on the

A consulting firm provides services with two complexity levels: Basic and Advanced. The company incurs overhead costs of $600,000, which it allocates based on the following cost drivers:

Basic: Number of clients (estimated at 200 clients)

Advanced: Number of transactions (estimated at 500 transactions) Allocate the overhead costs to each service using activity-based costing with complexity levels and transaction drivers.

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