Question

Required information Sunrise Accounting provides basic tax services and “rent-a-controller” accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool. Activity Transportation costs Electronic processing Office support Total Activity Cost Cost Driver $ 92,480 Mileage 130,800 Processing hours 76,700 Administrative hours Expected Tax Services Usage 6,800 miles 21,800 hours 4,130 hours Expected Controller Services Usage 47,600 miles 32,700 hours 1,770 hours Using activity proportions, determine the amount of overhead assigned to Controller Services. (Do not round intermediate calculations.) Transportation costs Electronic processing Office support Total Overhead $ 0

Answer 1

Expected Expected Total Activity Given that - Activity Total cost Activity cost Drivers Activity rate Tax controller services Services usage usage overhead charged to controller Services Transportion 47,600 1.7847,600 54,400 92,98169,900 = miles = $1.7 peo 92,480 mileage 6,800 miles costs miles mile Electronic processing poocessing 130,800 hours 21,800 34,700 hours hours 2:4X32, 700 54,500 130800/54,500 78,480$ hours hour =$2-4 per I office 76,700 Administratie hours 1,770 support 4,130 hours 5990 76,700/5990 12.80X 1770 = 22,6565 hours hours 1-12.8oper houg Total $182,056 $80,920 Isanspection costs Electronic processing $78,480 office support $ 22,656 $182,056 Total overhead