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 clients total job cost. A client's total job cost is a combination of 1) professional time spent on the client, and 2) operating costs allocated to the client's job. Curtis currently allocates operating costs to jobs based on the number of professional hours spent on the job.

Curtis estimates its five professionals will work a total of 9,000 hours on client jobs during the year, and their salaries will total $900,000. All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office lease, etc.) can be grouped into three activities. Relevant information for these activities are estimated as follows:

Activity	Total Activity Cost	Cost Driver	Total Usage by Corporate Clients	Total Usage by Private Clients
Transportation to clients	$9,400	round trip mileage to clients	2,500 miles	13,800 miles
blueprint copying	30,700	number of copies	240 copies	1,000 copies
office support	197,800	secretarial time	2,500 hours	3,000 hours
total operating cost	$237,900

Amy Lee hired Curtis & Company to design her kitchen remodeling. A total of 22 professional hours were spent on this job. In addition, Amy'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 Amy changed the plans several times. In addition, 15 hours of secretarial time were used lining up the subcontractors for the job.

Part A) Round all allocation rates to nearest cent and allocations to nearest dollar

What is the total cost of Amy Lee's remodeling job under the current system?

Part B) Round all allocation rates to nearest cent and allocations to nearest dollar

What would be the total cost of Amy Lee's remodeling job under an activity-based costing system?