Port Accounting Performs Two Types of Services, Audit and Tax

question 4

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: $\begin{array}{lrr}&\text { Audit } &\text{Tax}\\\text { Direct labor cost } & \$ 50,000 & \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Leqal hours used } & 200 & 800\end{array}$
-Port Accounting performs tax services for Cathy Kane.Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used.What is the total cost of the Kane job using activity-based costing?

• A)$2,880
• B)$3,000
• C)$4,080
• D)$4,200

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