Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Benson & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for Amy Little hired Benson to design
Benson & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for Amy Little hired Benson to design her kitchen remodeling. A total of 20 professional hours were incurred on this job. In corporate clients, Benson charges customers at a billing rate equal to 132% of the client's total job cost. A client's total addition, Little's remodeling job required one of the professionals to travel back and forth to her house for a total of 120 job cost is a combination of (1) professional time spent on the client ($65 per hour cost of employing each professional) miles. The blueprints had to be copied four times because Little changed the plans several times. In addition, 22 hours of and (2) operating overhead allocated to the client's job. Benson allocates operating overhead to jobs based on secretarial time were used lining up the subcontractors for the job. 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. Read the requirements (Click the icon to view the operating cost information.) A Data Table Requirement 1. Calculate the current Indirect cost allocation rate per professional hour. (Round your answer The current indirect cost allocation rate per professional hour is $ 25,50 Requirement 2. Calculate the total amount that would be billed to Little given the current costing structure. Determine the formula, then calculate the amount that would be billed to Little given the current costing struc Total cost of job Markup porcentage = Amount billed to client 1800.00 X 132% 2376.00 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: Total Activity Total Usage by Total Usage by Private Activity Cost Cost Driver Corporate Clients Clients Transporation to clients.... $ 6,000 Round-trip mileage to clients 3,500 miles 11.500 miles Blueprint copying ........ 39,000 Number of copies 250 copies 750 copies Office support 2,700 secretarial hours 2,300 secretarial hours $ 255,000 Total operating overhead 210,000 Secretarial time Choose from any list or enter any number in the input fields and then click Check Answer. Print Done parts Wear A Final CN 6 remaining
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started