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Bromide Partners provides three services: accounting, auditing, and tax services. The total business overhead of $650,000 has been divided into two cost pools, as shown below:
Partners: $200,000
Juniors: $450,000
The hours spent by each type of staff are as shown below:
Accounting Auditing Tax Services Total
Partner Hours 150 250 400 800
Junior hours 1,200 2,800 1,000 5,000
Problem 1: What is the total cost of providing audit services?
Select one:
a. $341,500
b. $650,000
c. $314,500
d. $722,500
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