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(Click the icon to yiow the rosored the foliowing resources last month (Click the icon to view ABC cost allocation rates.) (Click the icon to

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(Click the icon to yiow the rosored the foliowing resources last month (Click the icon to view ABC cost allocation rates.) (Click the icon to viow ABC cost allocation rates.) (Click the icon to viow the background summary.) 1. Compute the cost assigned to the Yancy engagement and to the Betten engagement using the ABC system. 2. Compute the operating income from the Yancy engagement and from the Betten engugement using the ABC system. Requirement 1. Compute the cost assigned to the Yancy engagement and to the Betten engagement using the ABC system. (Round your answers to the nearest whole dollar.) The Yancy and Betten engagements used the following resources last month: (Click the icon to view the resources used by each engagement.) Icon to view ABC cost allocation rates.) Dt Data Table 1) (Click the icon to view the background summary.) 1. Compute the 2. Compute th Data table BC system. ng the ABC system. Requirement It using the ABC system. (Round your ansv Fig (Click the icon to view ABC cost allecation rates.) Data Fable Data table More info Driver inc, is a technology consulting firm focused on website development and integration of internet business applications. President Holly Weber's ear is ringing after an unpleasant call from client James Yancy. Yancy was irate after opening his bill for Driver's redesign of his company's website. Yancy said that Driver's major competitor, Alpha Applications, charged much lower fees to another company for which Yancy serves on the board of directors. Weber is puzzled for two reasons. First, she is confident that her firm knows website design and support as well as any of Driver's competitors. Weber cannot understand how Alpha Applications can undercut Driver's rates and still make a profit. But Alpha Applications is reputed to be very profitable. Second, just yesterday Weber received a call from client Robert Betten. Betten was happy with 1e ABC system. (Round the excellent service and reasonable fees Weber charged him for adding a database-driven job-posting feature to his company's websito. Weber was surprised by Betten's compliments because this was an unusual job for Driver that required development of complex database management and control applications. and sho had felt a little uneasy accepting it Like most consulting firms, Driver traces direct labour to individual engagements (jobs). Driver allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Weber is Weber expects to incur $778,000 of indirect costs this year, and she expects her firm to work 5,800 direct labour hours. Weber and the other systems consultants earn $385 per hour. Clients are billed at 150% of direct labour cost. Last month, Driver's consultants spent 115 hours on Yancy's engagement. They also spent

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