10. Ortiz Corp., a law firm, has decided to set up an activity based costing system for its legal dept. The department's major expense relates to professional salaries estimated by activity as follows: Contract work $580,000 Regulation work 420,000 The approximate cost allocation bases are as follows: Contract work: Number of pages in contract Regulation work: Number of reviews For the current year, the legal dept. reviewed 100,000 pages of contract and responded to 560 regulatory reviews. Required: (a) Calculate the contract rate per page. (b) In the current period, the dept. reviewed 18,000 pages of contract and made 32 regulatory reviews. Assume that the regulation rate is $750 per review, calculate the amount of professional salaries to be allocated to the legal dept