! 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 Transportation costs Electronic processing Office support Total Overhead $ Total Activity Cost $50,000 Mileage 75,000 Processing hours 20,000 $ Cost Driver Using activity proportions, determine the amount of overhead assigned to Controller Services. (Do not round intermediate calculations.) 25 75 12 112 Administrative hours Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours Expected Controller Services Usage 35,000 miles 30,000 hours 1,500 hours

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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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
Transportation costs
Electronic processing
Office support
Total Overhead
$
Total
Activity
Cost
$50,000 Mileage
75,000 Processing hours
20,000
$
Cost Driver
Using activity proportions, determine the amount of overhead assigned to Controller Services. (Do not round intermediate
calculations.)
25
75
12
112
Administrative hours
Expected Tax
Services Usage
5,000 miles
20,000 hours
3,500 hours
Expected
Controller
Services Usage
35,000 miles
30,000 hours
1,500 hours
Transcribed Image Text:! 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 Transportation costs Electronic processing Office support Total Overhead $ Total Activity Cost $50,000 Mileage 75,000 Processing hours 20,000 $ Cost Driver Using activity proportions, determine the amount of overhead assigned to Controller Services. (Do not round intermediate calculations.) 25 75 12 112 Administrative hours Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours Expected Controller Services Usage 35,000 miles 30,000 hours 1,500 hours
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