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:

Pap Test

A screening procedure for cervical cancer that involves collecting cells from the cervix and examining them under a microscope to detect abnormalities.

Cervical Cancer

A malignant tumor of the cervix, the lower part of the uterus, often caused by the human papillomavirus (HPV).

Ovarian Cancer

A type of cancer that originates in the ovaries, characterized by the abnormal growth of cells that can invade or spread to other parts of the body.

Corpus Albicans

The fibrous scar tissue that forms from the degenerated corpus luteum within the ovary after ovulation when pregnancy does not occur.