core: 0.44 of 4 pts HW Score: 81.01% ,16.2 f 20 pts 8 of 8 (8 complete) E4-22A (similar to) Question Help Haas & Company is an architectural firm specializing in home remodeling for private clients and new office Anna Little hired Haas to design her kitchen remodeling. A total of 35 professional hours were incurred on this cost & client's tntal inh.cost is a combinalion of 1) prmfessional time spent on the client/S60 ner hur.cost of employing each professional) and (2) operating overhead allocated to the client's job. Haas allocates operating overhead to jobs based o professionals will incur a total of 10,000 professional hours working on client jobs during the year. (Click the icon to view the operating cost information.) for a total of 120 miles The hluerints had to he roniedd four times hecause Little changed the nlans several times. In additian, 22 hours af secretarial time were used lining up the subcontractors for the job. the job. Haas estimates its five professional hours spent Read the reoquirements. Requirement 1. Calculate the current indirect cost allocation rate per professional hour. (Round your answer to the nearest cent.) 23.70 The current indirect cost allocation rate per professional hour is S Data Table Requirement 2. Calculate the total amount that would be billed to Little given the current costi Little given the curren Determine the formula, then calculate the amount that would be billed All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office lease, and: forth) can be assigned to the three activities. Total activity costs, cost drivers, and total usage of those cost drivers are estimated as follows: Total cost of job Markup percentage Amount billed to client Total Total Usage Total Usage Activity by Private by Corporate 1 Requirements Cost Cost Driver Clients Clients ration clients..... S 9,000 Raund-trip mileage to clients 6,000 miles 9,000 miles 1 Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Little given the current costing structure 33.000 Number of copies.. t copying.. . ... . i 450 copies 550 copies 2 to client inh. vity cost allocation rates that could be used to allocate operating overhead costs Calculate the amount that would be billed to Little using ABC costing. 5. Which type of billing system 195,000 Secretarial time. 2,500 secretarial 2.500 secretarial 3 upport. hours hours 4. S 237.000 more fair to clients? Explain. erating overhead Print Done