Reference no: EM132782360

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