Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer support, $300,000; and legal support, $150,000. 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

Gant Accounting performs tax services for Cathy Lane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using activity-based costing?

Answer rating: 100% (QA)

Total cost Direct labor cost Comp... View the full answer