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 125% 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 the firm's average professional salary, and 2) operating costs, 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. However, near the end of 2020, Curtis' accountant decided to replace the single driver system for allocating operating costs with an activity-based costing system.

For 2021, Curtis estimates its five professionals will work a total of 11,000 hours on client jobs during the year, and their salaries will total $880,000. As part of the new ABC system, the accountant has grouped all of the firm's operating costs (travel reimbursements, copy costs, secretarial salaries, office lease, etc.) into three activities, and has provided the following estimates for these activities:

	Total		Total Usage by	Total Usage by
Activity	Activity Cost	Cost Driver	Corporate Clients	Private Clients

Transportation to clients	$11,800	Round-trip mileage to clients	3,400 miles	10,200 miles
Blueprint copying	$32,100	Number of copies	190 copies	900 copies
Office support	$192,100	Secretarial time	2,000 hours	2,500 hours
Total operating costs	$236,000

During 2021, Amy Lee hired Curtis & Company to design her kitchen remodeling. A total of 25 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 120 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:

What would the total cost of Amy Lee's remodeling job have been under the single driver system? _______________

PART B:

What is the total cost of Amy Lee's remodeling job have been under the activity-based costing system? ____________