Question

View Policies Current Attempt in Progress Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer support, $279000; and legal support, $139500. Information on the two services is: Direct labor cost CPU minutes Legal hours used Audit Tax $50000 $100000 40000 10000 200 800 Overhead applied to audit services using traditional costing is O $279000. O $167400. O $251100 O $139500 Save for Later Attempts: 0 of 1 used Submit Answer

Answer 1

Answer:

$251100

EXPLANATION:

Overhead applied using traditional costing:

Under traditional costing overhead applied based on volume of resources consumed by the products or services

Overhead:
Computer support cost	$279,000
Legal support cost	139,500

Allocation of overhead

Explanation	Audit Services
Computer support cost : $279,000/50,000 minutes*40,000 minutes = $223,200	$223,200
Legal support cost: $139,500/1,000 hours * 200 hours = $27,900	27,900
Total overhead	251,100

Thank you :)