Port Accounting Performs Two Types of Services, Audit and Tax

question 8

Multiple Choice

Port Accounting performs two types of services, audit and tax.Port's overhead costs consist of computer support, $240,000; and legal support, $120,000.Information on the two services is: $$\begin{array} { l l l } &\underline{ \text { Audit } }&\underline { \text { Tax } } \\\text { Direct labour cost } & \$ 50,000& \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Legal hours used } & 200 & 800\end{array}$$ Overhead applied to audit services using ABC is

• A)$120,000.
• B)$144,000.
• C)$216,000.
• D)$240,000.

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Definitions:

Working Memory Capacity

The amount of information that can be temporarily held and manipulated in the mind for cognitive tasks like problem-solving and language comprehension.

Inspection Time

The minimal amount of time an individual needs to distinguish between two stimuli, used as a measure of cognitive speed.

Perseveration

The tendency to repeat a response inappropriately; often a result of deficits in executive control caused by prefrontal lesions.

Mental Speed

The rapidity with which an individual can process information, make decisions, and solve problems.