Bromide Partners provides three services: accounting, auditing, and tax services. The total business overhead of $650,000 has been divided into two cost pools, as shown below:
|
Partners |
$200,000 |
|
Juniors |
$450,000 |
The hours spent by each type of staff are as shown below:
|
Accounting |
Auditing |
Tax Services |
Total |
|
|
Partner hours Junior hours |
150 1,200 |
250 2,800 |
400 1,000 |
800 5,000 |
What is the total cost of providing audit services?
- $314,500
- $341,810
- $722,500
- $650,000