Question
Consider Curtis and Company from Lon-Capa #1. It estimates that its five professionals will work a total of 11,000 hours on client jobs during the
Consider Curtis and Company from Lon-Capa #1. It estimates that its five professionals will work a total of 11,000 hours on client jobs during the year, and their salaries will total $990,000. Operating cost information is as follows.
Activity | Cost | Cost Driver | Corporate Usage | Private Usage |
Transportation | $11,800 | Mileage to clients | 2,900 miles | 13,100 miles |
Blueprint copying | 38,100 | Number of copies | 180 copies | 800 copies |
Office support | 189,900 | Secretarial time | 2,800 hours | 2,700 hours |
Total costs | $239,800 |
1) Assume one of its corporate clients required 35 professional hours, 250 miles of travel time, 11 blueprint copies, and 50 secretarial hours. If Curtis uses a single-driver system to allocate its operating costs, with secretarial time as the single driver, what would be the allocation of operating costs to this client [round rate(s) to the nearest cent]?
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