Gant Accounting Performs Two Types of Services, Audit and Tax

question 130

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 tax services using activity-based costing is

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

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Definitions:

Electroencephalograph (EEG)

A device used to record electrical activity of the brain, used in the diagnosis of various neurological disorders, in sleep research, and for monitoring brain activity in other research contexts.

Melatonin

A hormone secreted by the pineal gland that plays a major role in regulating sleep-wake cycles and circadian rhythms.

Insomnia

The inability to get to sleep, stay asleep, or get a good quality of sleep.

Total Amount

Refers to the complete or whole quantity or sum of all parts or elements within a set or group.