Ellis Bradley (EB) is a regional CPA firm that provides client services in three areas, Accounting & Assurance (A&A) Services, Tax Services, and Specialty Services. A&A Services include audit, review, and compilation as well as accounting and payroll services. Tax services include tax preparation and reporting as well as tax research and planning. Specialty Services encompass a variety of services such as business advisory (strategic planning, operations improvement), risk management, business valuation, forensics (fraud investigation), and employee benefits. The financial results for the year just ended are presented below: Total Revenues A&A $4,350,000 Tax $3,450,000 Specialty $1,800,000 $9,600,000 Variable costs 1,840,000 1,320,000 840,000 4,000,000 Contribution margin 2,510,000 2,130,000 960,000 5,600,000 Traceable fixed costs 770,000 460,000 190,000 1,420,000 Common fixed costs 2,200,000 $1,980,000 Operating income Variable costs are those associated with client service, such as professional labor. The traceable fixed costs are fixed costs that can be traced to the client service area, such as secretarial support assigned to a client service area. The common fixed costs are indirect costs common to all client service areas that cannot be traced, and includes costs such as building rent and utilities, computer servers and support, and human resources. You have been assigned the task of estimating a fixed cost allocation rate (FOHR) for each client service area using the prior year's actual information and following the steps in requirement (a) below. You make some inquiries to gather the following information. The common fixed costs can be grouped into three categories: Human Resources (HR), which includes all personnel-related costs such as administering employee benefits, recruiting, and employee training; Technology Support (TS), which consists of the computers, servers, software, and technology support personnel; and Building Occupancy (BO), which includes costs such as rent and utilities, depreciation on fixtures and equipment, insurance, etc. You determine appropriate allocation bases are as follows: Support Area Human Resources Tech Support Building Occupancy Total common fixed costs Costs $ 510,000 Allocation Base Number of employees 950,000 Computer time 740,000 Square footage $2,200,000