4 (7 marks) Getta Geek Ltd offers a range of IT consulting services. The company's service costing system estimates the cost of each consulting job by accumulating costs of the professional labour that works on the job plus a charge for overhead. The cost of professional labour is charged to jobs using the following three rates: If graduate IT senior consultant $20 per hour $50 per hour $150 per hour The predetermined overhead rate is based on professional labour costs, which are budgeted to be $442 400 for the current year. The estimated overheard costs for the current year as budgeted to be: ASSESSENT BRIEFS MANAGEMENT ACCOUNTING 32022 Management salaries Salaries of clerical and reception staff Depreciation on IT hardware and software $490000 190000 160000 Stationery 15000 Telecommunications 21000 Insurance 120000 Depreciation on office fixtures and fittings 7500 Electricity 60500 26350 mc 4 Council rates 15660 During the month of May the company provided three services, which consumed the following quantities of professional labour (in hours): Client IT Trainee IT Graduate Senior consultant Smith and Sons Jones and Partners 20 The Business Centre 70 222 50 100 15 140 10 80 20 Required: 1. Calculate the predetermined overhead rate to be used at Getta Geek (1 mark) 2. Calculate the cost of the three services (4 marks) 3. How might the management of Getta Geek use this information? (1 mark) 4. How would Getta Geek's approach differ if the firm used a billing rather than a costing system? (1 mark)