Question - Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer support, $360000; and legal support, $177000. Information on the two services is:
Audit Tax
Direct labor cost $50000 $100000
CPU minutes 40000 10000
Legal hours used 200 800
Gant Accounting performs tax services for Cathy Lane. Direct labor cost is $1200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using activity-based costing?
$4497
$4320
$6120
$5697