drop down options for req5:

-ABC, traditional

-direct labor hours, resources used, total hours on job

-not expensive, very expensive

-set one time fee, according to the number of

-operating, receiving, selling

Farris \& Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Farris 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 time spent on the client (\$68 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Farris allocates operating overhead to jobs based on professional hours spent on the job. Farris 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.) Ann Lawson hired Farris to design her kitchen remodeling. A total of 25 professional hours were incurred on this job. In addition, Lawson'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 Lawson changed the plans several times. In addition, 13 hours of secretarial time were used lining up the subcontractors for the job. 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: Requirements =Activitycostallocationrate=permile=percopy=persecretarialhour per secretarial hour Requirement 4. Calculate the amount that would be billed to Lawson using ABC costing. Determine the formula, then calculate the amount that would be billed to Lawson using ABC costing. (Round all amounts to the nearest cent.) x =Amountbilledtoclient Requirement 5. Which type of billing system is more fair to clients? Explain. The billing system is more fair to clients because they are charged according to Print Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Lawson given the current costing structure. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs. Walculate the amount that would be billed to Lawson using ABC costing. 5. Which type of billing system is more fair to clients? Explain. For example, copying blueprints is . Under the fairer system, clients are charged blueprint copies that their job required. The fairer system better recognized the extent to which costs are incurred by each unique client job