Colbert Associates prepares architectural drawings to conform to local structural-safety codes. (Click the icon to view the income statement.) (Click the icon to view the percentage of time spent on activities.) Assume administrative and support costs vary with professional-labor costs. Consider each requirement independently. Read the requirements. Requirement 1. How much of the total costs in 2017 are value-added, non-value-added, or in the gray area between? Explain your answers briefly. What actions can Colbert take to reduce its costs? Begin by calculating the total labor costs, then calculate the total costs. (If a box is not used in the table, leave the box empty; do not enter a zero. Round your answers to the nearest whole dollar.) Value- Gray Non-value Added Area -Added Total Making calculations and preparing drawings Checking calculations and drawings Correcting errors found in drawings Making changes in response to client requests Correcting errors to meet government building code Total professional labor costs Colbert Associates prepares architectural drawings to conform to local structural-safety codes. (Click the icon to view the income statement.) : (Click the icon to view the percentage of time spent on activities.) Assume administrative and support costs vary with professional-labor costs. Consider each requirement independently. Read the requirements. Requirements Requirement 1. How much of the total costs at actions can Colbert take to reduce its costs? Begin by calculating the total labor costs, ther Id your answers to the nearest whole dollar.) Making calculations and preparing drawings Checking calculations and drawings Correcting errors found in drawings Making changes in response to client reques 1. How much of the total costs in 2017 are value-added, non-value-added, or in the gray area between? Explain your answers briefly. What actions can Colbert take to reduce its costs? 2. What are the consequences of misclassifying a non-value-added cost as a value-added cost? When in doubt, would you classify a cost as a value-added or non-value-added Explain briefly. 3. Suppose Colbert could eliminate all errors so that it did not need to spend any time making corrections and, as a result, could proportionately reduce professional-labor costs. Calculate Colbert's operating income for 2017. 4. Now suppose Colbert could take on as much business as it could complete, but it could not add more professional staff. Assume Colbert could eliminate all errors so that it does not need to spend any time correcting errors. Assume Colbert could use the time saved to increase revenues proportionately. Assume travel costs will remain at $14,000. Calculate Colbert's operating income for 2017. Correcting errors to meet government buildin Total professional labor costs Enter any number in the edit fields and the Print | Done | Done Colbert Associates prepares architectural drawings to conform to local structural-safety codes. E: (Click the icon to view the income statement.) : (Click the icon to view the percentage of time spent on activities.) Assume Read the A Data Table i Data Table Require D costs? Its income statement for 2017 is as follows: The percentage of time spent by professional staff on various activities follows: Begin by lar.) $ 737,880 Revenues 74 % Salaries of professional staff (7,800 hours x $48 per hour) Making calculations and preparing drawings for clients Checking calculations and drawings Correcting errors found in drawings (not billed to clients) Making changes in response to client requests (billed to clients) 374,400 14,000 168,480 Travel Administrative and support costs Total costs 556,880 Correcting own errors regarding building codes (not billed to clients) Making Checkin Correctid Making Correctid Total pro $ 181,000 Operating income Total Print Done Print Print Done Done