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Famis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients Fans charges customers
Famis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients Fans charges customers at a billing rate equal to 120% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client ($3 per hour cost of employing each professional) and 2) operating overhead allocated to the clents) Fans allocates operating overhead to jobs based on professional hours spent on the job. Farts estimates to five professionals will incur a total of 10,000 professional hours working on dent jobs during the year Anna Larson hired Fans to design her kitchen remodeling A total of 25 professional hours were incurred on this job. In addition, Larson'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 Larson changed the plans several times In addition, 14 hours of secretarial time were used lining up the subcontractors for the job Read the requrements Requirement 1. Calculate the current indirect cost allocation rate per professional hour (Round your answer to the nearest cert.) The current indirect cost allocation rate per professional hour Requirement 2. Calculate the total amount that would be billed to Larson given the cument costing structure Determine the formule, then calculate the amount that would be billed to Larson given the curent costing structure (Round at amounts to b Total cost of job Markup percentage Amount bled to det Requirement 3. Calculate the activity cost alocation rates that could be used to allocate operating overhead costs to co Determine the formula then calculate the activity cost allocation rates that could be used to allocate operating overhead costs to clent jobs (Round the rates to the nearest cent) Transportation to certs copying Office suppo Requirement 4. Calculate the amount that would be billed to Larson using ABC co Activity cost allocation rate per copy Determine the formula, then calculate the amount that would be billed to Larson using ABC costing (found all amounts to the nearest cent Amount billed to de
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