Gant Accounting Performs Two Types of Services, Audit and Tax

question 108

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: Gant Accounting performs tax services for Cathy Lane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using activity-based costing?

• A) $3,600
• B) $3,750
• C) $5,400
• D) $4,950

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Definitions:

Estimated Form

A version of a statistical model where the parameters have been estimated from data, as opposed to its theoretical or exact form.

Unit

The basic measure or standard used to quantify the results or elements in a dataset.

MSR

An acronym that can stand for Mean Squared Regression, representing the average squared difference between the observed and predicted values in regression analysis.

MSE

Mean Squared Error, a measure of the average squared differences between the observed actual outcomes and the outcomes predicted by a model.