Gant Accounting Performs Two Types of Services, Audit and Tax

question 75

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: $$\begin{array} { l r r } & \text { Audit } & \text { Tax } \\\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Legal hours used } & 200 & 800\end{array}$$ Overhead applied to audit services using traditional costing is

• A) $150,000.
• B) $180,000.
• C) $270,000.
• D) $300,000.

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Definitions:

Room Temperature

The ambient temperature of a room, typically considered to be between 20°C and 22°C (68°F and 72°F).

Muscle Mass

The total weight or volume of muscle in an individual's body, often associated with strength, athletic performance, and health.

Strength Improvement

Strength Improvement involves exercises or activities designed to increase muscle mass, power, and endurance.

Endurance

The ability to sustain physical or mental activity for extended periods of time.