Gant Accounting Performs Two Types of Services, Audit and Tax

question 53

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: $$\begin{array} { l r r } & { \text { Audit } } &{ \text { Tax } } \\\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Legal hours used } & 200 & 800\end{array}$$ 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?

• A)$3,600
• B)$3,750
• C)$5,400
• D)$4,950

---

Definitions:

Job Agents

Automated online systems or services that help individuals find job opportunities by matching their profiles with available vacancies.

Career Centers

Facilities or services provided by educational institutions or organizations to help individuals plan and advance their careers.

Internal Factor

Any factor within an organization that can affect its operations, performance, and strategy, such as culture, employees, or internal processes.

Projected Job Market

An estimation of the future availability of employment opportunities in various sectors.