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Total cost allocated to Accounting services using Activity-Based costing ABC

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(a) What is the total cost allocated to Accounting services using Activity-Based costing ABC?

Text: 4) Jane Smith, CPA, provides accounting and tax and legal services to her clients. In 2010, she charged $175 per hour for accounting and $200 per hour for tax and legal services. She estimates the following Operating profits declined last year and Ms. Smits has decided to use activity based costing (ABC) procedures to evaluate her hourly fees. She has gathered the following information from last year’s records:

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