Reference no: EM132716443

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   150            250         400                      800

Junior hours     1,200        2,800        1,000                   5,000

Problem 1: What is the total cost of providing audit services?

Select one:

a. $341,500

b. $650,000

c. $314,500

d. $722,500