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Question - Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer support, $327000; and legal support, $168000. Information on the two services is:
Audit Tax Direct labor cost $50000 $100000
CPU minutes 40000 10000
Legal hours used 200 800
Required - Find the Overhead applied to audit services using traditional costing?
a. $165000.
b. $199800.
c. $295200.
d. $330000.
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