1. Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Laughlin given the current costing structure Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs. Calculate the amount that would be billed to Laughlin using ABC costing. Which type of billing system is more fair to clients? Explain. Print Done Benson & Company is an architectural firm specializing in home remodeling for private clients and new omce buildings for corporate Clients. Benson charges customers at a billing rate equal to 130% of the Client's lotaljob.cost. A client's total job cost is a combination of (1) professional time spent on the client ($69 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job Benson allocates operating overhead to jobs based on professional hours spent on the job. Benson estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year Anne Laughlin hired Benson to design her kitchen remodeling. A total 35 professional hours were incurred on this job. In addition, Laughin's remodeling job required one of the professionals to travel back and her house for a total of 150 miles. The blueprints had to be copied tour times because Laughlin changed the plans several times. In c on hours of secretarial time were used lining up the subcontractors for job. Read the requirements Requirement 1. Calculate the current indirect cost allocation rate per professional hour (Round your answer to the nearest cent The current indirect cost allocation rate per professional hour is $ Question Help Benson & Company is an architectural tim specializing in home remodeling for private clients and new office buildings for corporate clients. Benson charges customers at a billing rate equal to 130% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client (569 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Benson allocates operating overhead to jobs based on professional hours spent on the job. Benson estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the Anne Laughlin hired Benson to design her kitchen remodeling. A total of 35 professional hours were incurred on this job. In addition, Laughin's remodeling job required one of the professionals to travel back and forth to her house for a total of 150 miles. The blueprints had to be copied tour times because Laughlin changed the plans several times. In addition, 16 hours of secretarial time were used lining up the subcontractors for the job Year Read the requirements Requirement 1. Calculate the current indirect cost allocation rate per professional hour (Round your answer to the nearest cent) The current indirect cost allocation rate per professional hour iss SN Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Laughlin give he current costing structure! Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs Calculate the amount that would be billed to Laughlin using ABC costing Which type of billing system is more fair to clients? Explain. Print Done 0 Data Table All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office lease, and so forth) can be assigned to the three activities. Total activity costs, cost drivers, and total usage of those cost drivers are estimated as follows: Activity Transporation to clients....$ Blueprint copying ........... Office support Total Activity Cost Cost Driver 6,000 Round-trip mileage to clients..... 36,000 Number of copies 205,000 Secretarial time..... Total Usage by Corporate Clients 1,500 miles 600 copies 2,300 secretarial Total Usage by Private Clients 13,500 miles 400 copies 2,700 secretarial hours hours Total operating overhead $ 247,000 Print Done 1. Calculate the current indirect cost allocation rate per professional hour. 2. Calculate the total amount that would be billed to Laughlin given the current costing structure. 3. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs. 4. Calculate the amount that would be billed to Laughlin using ABC costing. 5. Which type of billing system is more fair to clients? Explain. Benson & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Benson charges customers at a biling rate equal to 130% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client (569 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Benson allocates operating overhead to jobs based on professional hours spent on the job Benson estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year (Click the icon to view the operating cost information) Requirement 1. Calculate the current indirect cost allocation rate per professional hour (Round your answer to the nearest cent) The current indirect cost allocation rate per professional hour iss Anne Laughlin hired Benson to design her kitchen remodeling A total of 35 professional hours were incurred on this job. In addition, Laughlin's remodeling job required one of the professionals to travel back and forth to her house for a total of 150 miles. The blueprints had to be copied four times because Laughlin changed the plans several times. In addition, 16 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements