Question
Consider Curtis and Company. It estimates that its five professionals will work a total of 12,000 hours on client jobs during the year, and their
Consider Curtis and Company. It estimates that its five professionals will work a total of 12,000 hours on client jobs during the year, and their salaries will total $1,080,000. Operating cost information is as follows.
Assume one of its corporate clients required 35 professional hours, 220 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]?
Activity Transportation Blueprint copying Office support Total costs Cost $10,600 33,000 185,800 Cost Driver Mileage to clients Number of copies Secretarial time Corporate Usage 3,200 miles 170 copies 2,500 hours Private Usage 13,300 miles 800 copies 2,500 hours $229,400Step by Step Solution
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