Davis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Davis 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 (563 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Davis allocates operating overhead to jobs based on professional hours spent on the job. Davis estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year. (Click the icon to view the operating cost information) 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 $ i Requirements 1. Calculate the current indirect cost allocation rate per professional hour 2. 3. Calculate the total amount that would be billed to Leo given the current costing structure Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs, 4. Calculate the amount that would be billed to Leo using ABC costing. 5. Which type of billing system is more fair to clients? Explain. Print remaining Done Enter any number in the edit fields and then click Check Answer. 8 parts X i Annabelle Leo hired Davis to design her kitchen remodeling. A total of 20 professional hours were incurred on this job. In addition, Leo's remodeling job required one of the professionals to travel back and forth to her house for a total of 130 miles. The blueprints had to be copied four times because Leo changed the plans several times. In addition, 21 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements Data Table 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. Activity Transporation to clients Blueprint copying Office support. Total operating overhead S S Total Activity Cost Cost Driver 12,000 Round-trip mileage to clients 30,000 Number of copies 190,000 Secretarial time 232,000 Print Done Total Usage: by Corporate Clients 2.500 miles 550 copies 2,900 secretarial hours Total Usage by Private Clients 12.500 miles 450 copies 2.100 secretarial X hours