Curtis & Company is an architectural firm specializing home remodeling for private clients and new office buildings for corporate clients. Curtis charges customers at a billing rate equal to 132% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client ($62 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Curtis allocates operating overhead to jobs based on professional hours spent on the job. Curtis estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year. 3(Click the icon to view the operating cost information.) Amy Lee hired Curtis to design her kitchen remodeling. A total of 25 professional hours were incurred on this job. In addition, Lee's remodeling job required one of the professionals to travel back and forth to her house for a total of 150 miles. The blueprints had to be copied four times because Lee changed the plans several times. In addition, 22 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements Requirements Requirement 1. Calculate the current indirect cost allocation rate per professional hour. (Round your answer to the nearest cent.) The current indirect cost allocation rate per professional hour is 1. 2. 3. Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Lee given the current costing structure. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs. Calculate the amount that would be billed to Lee using ABC costing. Which type of billing system is more fair to clients? Explain. 4. 5. Data Table Print Done All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office lease, and so 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 Activity Total Usage by Total Usage by Private Activity Cost Cost Driver Corporate Clients Clients ... $ Transporation to clients 9,000 Round-trip mileage to clients 2,500 miles 12,500 miles 37,000 Number of copies 250 copies Blueprint copying 750 copies 200,000 Secretarial time Office support 2,400 secretarial hours 2,600 secretarial hours $ 246,000 Total operating overhead ... Check