Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Curtis & Company is an architectural firm speclalizing in home remodeling for private clients and new office buildings for corporate clients. Curtis & Company charges

image text in transcribed

Curtis & Company is an architectural firm speclalizing 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 2) operating costs allocated to the client's jnb. crtis currently allocates operating costs to johs based on the numher af professional hours spent an the jab. Curtis estirmates its tive professionels will work a total of 11,000 hours on client jobs during the year, and their salaries will total 51,100,000. All operating costs other than professional salaries (travel reimburserrients copy costs, secretarlal salarles, office lease, etc.) can be grouped Into three activities. Relevant Infonmation for these activitles are estlimated as follows Total Activity Cost Total Usage by Total Usage by Activit Transportation to clients Rlueprint copying Office support Total operating costs Cost Driver Corporate Clients 3,100 miles 24n copies 2,000 hours Private Clients 12,600 miles ROn copies 2,600 hours S11,200 Round trip mileage to clients Numher of copies 39,200 192,400 $242,800 Secretarial tirne Amy Lee hired Curtis & Company o design her kitchen remodeling A total of 25 professional hours were spent on his lob. In addition, Amy's remodeli IOb required one of the professionals to ravel back and forth to her house for a total of 120 miles. The blueprints had to be copled five times because Amy changed the plans several times. In additlon, 15 hours of secretarlal time were used lining up the subcontractors for the job. REQUIRED EROUND ALL ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.J Part A [5 tries; 5 points] What is the total cost of Amy Lee's remodeling job under the current single-driver system? Submit Answer Trios 0/6 Part B [5 tries; 5 oints] what would be the total cost of Amy Lee's remodeling job under n activity based costing system? Submit Answer ries o/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security Audit And Control Features SAP ERP

Authors: Deloitte Touche Tohmatsu Research Team And Isaca

3rd Edition

1604201150, 978-1604201154

More Books

Students also viewed these Accounting questions

Question

What did you learn about at the last Chamber of Commerce event?

Answered: 1 week ago