Clark and Shiffer LLP perform activities related to e commerce consulting and information systems in Vancouver, British Columbia The firm, which bills $160 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff The cost per hour for professional staff time is $70 Selected information follows Billable hours to clients for the year totaled 8,000, consisting of information systems services, 4,800 e commerce consulting, 3,200 Administrative cost of $411,760 was (and continues to be) allocated to both services based on billable hours These costs consist of staff support, $220,200 in house computing, $155,000 and miscellaneous office charges, $36,560 A recent analysis of staff support costs found a correlation with the number of clients served In house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively A tabulation revealed the following data E Commerce Consulting Information Systems Services Total Number of clients 65 245 310 Number of computer hours 2,300 3,600 5,900 Number of client transactions 820 680 1,500 Required 2 Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours Determine the profitability of the firms e commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue (Do not round intermediate calculations Round Profitability to 2 decimal places ) Department Total Billings Income Profitability E commerce consulting Information systems 3 Using activity based costing, determine the profitability of the firms e commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue (Round intermediate calculations and final answers to 2 decimal places ) Department Total Billings Income Profitability E commerce consulting Information systems

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Clark and Shiffer LLP perform activities related to e-commerce consulting and information systems in Vancouver, British Columbia. The firm, which bills $160 per hour for

Clark and Shiffer LLP perform activities related to e-commerce consulting and information systems in Vancouver, British Columbia. The firm, which bills $160 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $70. Selected information follows.

	Billable hours to clients for the year totaled 8,000, consisting of: information systems services, 4,800; e-commerce consulting, 3,200.
	Administrative cost of $411,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $220,200; in-house computing, $155,000; and miscellaneous office charges, $36,560.

A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

	E-Commerce Consulting	Information Systems Services	Total
Number of clients	65	245	310
Number of computer hours	2,300	3,600	5,900
Number of client transactions	820	680	1,500

Required:

Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firms e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue. (Do not round intermediate calculations. Round "Profitability" to 2 decimal places.)

Department	Total Billings	Income	Profitability
E-commerce consulting				%
Information systems				%

3.	Using activity-based costing, determine the profitability of the firms e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue.(Round intermediate calculations and final answers to 2 decimal places.)