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 134% 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.) Alyse Lee hired Farris to design her kitchen remodeling. A total of 35 professional hours were incurred on this job. In addition, Lee's remodeling job required one of the professionals to travel back and forth to her house for a total of 145 miles. The blueprints had to be copied four times because Lee changed the plans several times. In addition, 15 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements. av ha 1 Data Table he 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: Total Activity Total Usage by Total Usage by Private Activity Cost Cost Driver Corporate Clients Clients Transporation to clients .... $ 12,000 Round-trip mileage to clients... 2,500 miles 12,500 miles Blueprint copying 33,000 Number of coples 250 copies 750 coples Office support.. 185,000 Secretarial time 2,500 secretarial hours 2,500 secretarial hours $ 230,000 Total operating overhead * per mile $ 33.00 per copy 11 Total activity cost pool Total activity allocation base Activity cost allocation rate Transportation to clients $ 12,000 15,000 S 0.80 Blueprint copying $ 33,000 1,000 Office support 185,000 5,000 $ 37.00 per secretarial hour Requirement 4. Calculate the amount that would be billed to Lee using ABC costing. Determine the formula, then calculate the amount that would be billed to Lee using ABC costing. (Round all amounts to the nearest cont.) Total cost of job Markup percentage Amount billed to client 134% Choose from any list or enter any number in the input fields and then click Check Answer Clear All 2 parts remaining