Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $336000; 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 Overhead applied to tax services using traditional costing is $336000. $168000. $201600.
Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $336000; 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 Overhead applied to tax services using traditional costing is $336000. $168000. $201600.
Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $336000; 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 Overhead applied to tax services using traditional costing is $336000. $168000. $201600.
Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $336000; 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
Overhead applied to tax services using traditional costing is
$336000.
$168000.
$201600.
$302400.
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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