Gant Accounting Performs Two Types of Services, Audit and Tax

question 35

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: $$\begin{array} { l r r } & \text { Audit } & \multicolumn{1}{c} { \text { Tax } } \\\cline { 2 - 3 } \text { Direct labor cost } & \$ 50,000 & \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Legal hours used } & 200 & 800\end{array}$$ Overhead applied to tax services using activity-based costing is

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

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Definitions:

NEMA Standard

A set of guidelines developed by the National Electrical Manufacturers Association that specify standards for various electrical products, ensuring safety, reliability, and efficiency.

IEC Standard

IEC standard refers to the technical standards for electrical, electronic, and related technologies as defined by the International Electrotechnical Commission.

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Single-Phase

Refers to an electrical power system that uses only two conductors through which electrical current flows, providing a single, consistent alternating current (AC).