Course Contents LON-CAP PROBLEMS (MODULE 1] + PROBLEM #1 [COST ALLOCATION] Curtis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients Curtis & Company charges customers at a billing rate equal to 135% of the client's total job cost. In 2021, a client's total job cost was a combination of two components: 1. professional cost based on the professional hours spent on the client's job and the firm's average professional salary, and 2. opcration cost, allocated to the client's job, using a "single driver" system, with the number of professional hours spent on the job as the cost driver Timer Notes Evaluate Feedback Print In December of 2021, Curtis' accountant decided to replace the single driver system for allocating operating costs with an "activity-based costing system, starting in 2022. For 2021, Curtis estimated its five professional architects would work a total of 12,000 hours on client jobs during the year, and their salaries would total $960,000. As part of the new AC system, the accountant grouped all of the firm's operating costs (trovel reimbursements, copy costs, secretarial salaries, office lease, etc.) into just three activities, with the following estimates for these activities: Activity Transportation to clients Blueprint copying Office support Total operating costs Total Activity Cost $5,400 $35,000 $194,400 $237,800 Cost Driver Round-trip mileage to chents Number of copie Secretarial time Total Usage by Clients 12,200 ml 150 2,900 hours In January of 2022, Amy Lee hired Curtis & Company to design her kitchen remodeling. Curtis thinks the job will require 23 hours of professional time. In addition, she estimates that the professionals will have to drive a total of 100 miles back and forth to Lee's house, that three sets of blueprints will be required, and that 15 hours of secretarial time will be spent firing up subcontractors, suppliers, etc for the job. REQUIRED [ROUND ALL ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.] Part A 15 tries; 5 points What would the total cost of Amy Lee's remodeling job have been under 2021's single driver system) Submit Answer Tries 0/5 Part B [5 tries; 5 points] What is the budgeted total cost of Amy Lee's remodeling job under the activity-based costing system? Submit Answer Tries 0/5