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Curtis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Curtis & Company is
Curtis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients.
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 140% of the client's total job cost. A client's total job cost is a combination of 1) professional cost based on the professional hours spent on the client's job, 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 8,000 hours on client jobs during the year, and their salaries will total $720,000. 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: Total Total Usage by Total Usage by Activity Activity cost Cost Driver Corporate Clients Private Clients Transportation to clients $11,100 Round-trip mileage to clients 2,800 miles 13,000 miles 150 copies 34,600 Blueprint copying Number of copies 900 copies Ofice support 190,100 Secretarial time 2,100 hours 2,800 hours Total operating costs $235,800 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 140 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 REQUIRED CROUND ALL ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.] Part A 5 tries; 5 points] What is the total cost of Amy Lee's remodeling job under the current system? 367983 Incorrect you submitted the amount that the company will charge Amy Lee for the job, but the question asks for the total cost of the job sAiR. Tries 3/6 Part B [5 tries; 5 points] What would be the total cost of Amy Lee's remodeling job under an activity-based costing system? 4580 HR. Tries 1/6Step by Step Solution
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