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.

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A:

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