Required information Sunrise Accounting provides basic tax services and "rent-a-controller" accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool. Activity Transportation costs Electronic processing Office support Total Activity Cost Cost Driver $50,000 Mileage $75,000 Processing hours $ 20,000 Administrative hours X Answer is complete but not entirely correct. Transportation costs $ 25,000 X Electronic processing 71,430 x Office support 6,000✔ Total Overhead $ 102,430 Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours equired: sing activity proportions, determine the amount of overhead assigned to Controller Services. ote: Do not round intermediate calculations. Expected Controller Services Usage 35,000 miles 30,000 hours 1,500 hours
Required information Sunrise Accounting provides basic tax services and "rent-a-controller" accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool. Activity Transportation costs Electronic processing Office support Total Activity Cost Cost Driver $50,000 Mileage $75,000 Processing hours $ 20,000 Administrative hours X Answer is complete but not entirely correct. Transportation costs $ 25,000 X Electronic processing 71,430 x Office support 6,000✔ Total Overhead $ 102,430 Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours equired: sing activity proportions, determine the amount of overhead assigned to Controller Services. ote: Do not round intermediate calculations. Expected Controller Services Usage 35,000 miles 30,000 hours 1,500 hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Sunrise Accounting provides basic tax services and "rent-a-controller" accounting services. Sunrise has identified three
activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool.
Activity
Transportation costs
Electronic processing
Office support
Total
Activity
Cost
Cost Driver
$50,000 Mileage
$ 75,000 Processing hours
$ 20,000 Administrative hours
Expected Tax
Services Usage
5,000 miles
20,000 hours
3,500 hours
Answer is complete but not entirely correct.
Transportation costs
$ 25,000 X
Electronic processing
71,430
Office support
6,000
Total Overhead
$ 102,430
Expected
Controller
Services Usage
35,000 miles
30,000 hours
1,500 hours
Required:
Using activity proportions, determine the amount of overhead assigned to Controller Services.
Note: Do not round intermediate calculations.
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