Gant Accounting Performs Two Types of Services, Audit and Tax

question 16

Multiple Choice

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: $\begin{array}{lrr}&\text { Audit }& \text { Tax }\\\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Leqal hours used } & 200 & 800\end{array}$ Overhead applied to audit services using traditional costing is

• A)$150,000.
• B)$180,000.
• C)$270,000.
• D)$300,000.

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Definitions:

Industrialized Nations

Countries characterized by a high level of industrial activity, infrastructure, and higher standards of living.

Media Regulation

The control or governance of media enterprises and content, typically by governmental or independent bodies, to ensure ethical standards and public welfare.

Fin-Syn Rule

A set of regulations by the FCC that prevented television networks from owning the syndication rights to their own programming content.

Independent Producers

Independent producers are individuals or companies that create content or media such as films, music, or television shows outside of the major studio systems.