Port Accounting Performs Two Types of Services, Audit and Tax

question 85

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 traditional costing is

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

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Definitions:

Olfactory

Pertains to the sense of smell.

Endorphins

Neurochemicals produced by the body that act as natural painkillers and mood elevators, often released during exercise, excitement, and pain.

Substance P

A neuropeptide involved in the transmission of pain signals from the peripheral to the central nervous system.

Morphine

A powerful opiate analgesic derived from the opium poppy, used to relieve severe pain.