Sheffield Accounting performs two types of services, Audit and Tax. Sheffield's estimated overhead costs consist...

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Accounting

Sheffield Accounting performs two types of services, Audit and Tax. Sheffield's estimated overhead costs consist of computer support, $279000; and legal support, $139500.
Information on the two services and their estimated use of cost drivers is as follows:
Audit
Tax
Direct labor cost
$50000 $100000
CPU minutes
40000
10000
Legal hours used
200
800
Overhead assigned to audit services using activity-based costing is
$139500.
O $279000.
$167400.
O $251100.

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