Gant Accounting performs two types of services, Audit and Tax. Gant's estimated overhead costs consist of...

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Gant Accounting performs two types of services, Audit and Tax. Gant's estimated overhead costs consist of computer support, $300,000; and legal support, $150,000. Information on the two services and their estimated use of cost drivers is as follows: 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 ABC? Gant Accounting performs two types of services, Audit and Tax. Gant's estimated overhead costs consist of computer support, $300,000; and legal support, $150,000. Information on the two services and their estimated use of cost drivers is as follows: 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 ABC?

Answer rating: 100% (QA)

To calculate the total cost of the Lane job using ActivityBased Costing ABC we first need to allocate the overhead costs to each service based on thei... View the full answer