Port Accounting Performs Two Types of Services, Audit and Tax

question 79

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

Legislation

Laws and regulations enacted by governmental bodies to govern behavior, processes, and standards within a society.

Red Cross

An international humanitarian organization that provides emergency assistance, disaster relief, and education within communities under the principles of neutrality and impartiality.

Outpost Stations

Remote or strategically located stations positioned for monitoring, defense, or research purposes.

Diverse Skills

A broad range of abilities and competencies from different areas or disciplines.