Farris & Company is an architectural firm specializing in home remodeling for private clients and new office Abagal Lahired and to design her lachen remodeling A total of 25 professional hours were incurred on this buildings for corporate dients Farris charges customers at a biling rate equal to 1281 of the diens otaljob b . In addition Laws remodeling abrogured one of the professionals to travel back and forth to her house for a A dient cost is a combination of professional time spent on the client (567 per hour cost of employing total of 1 mes The blueprints had to be copied four times because low changed the plans several times in each professional and (2) operating overhead located to the cents job Farris allocates operating overhead to a d 19 hours of secretarial time were used lining up the subcontractors for the job jobs based on professional hours spent on the job Farris estimates its ve professionals will incur a tal of 10,000 professional hours working on client jobs during the year Read the (Cick the konto 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 alocation rate per professional hour iss Farris & Company is an architectural firm specializing the home remodeling for private clients and new office buildings for corporate clients Farthe charges customers of a biling rate equal to 128% of the client's total cost A dient's totaljob cost is a combination of professional time spent on the client (567 per hour cost of employing Abagall Law hired Farris to design her kachen remodeling A total of 25 professional hours were incurred on this job In addition Laws remodeling job required one of the professionals to travel back and forth to her house for a total of 160 miles. The blueprints had to be copied four times because Law changed the plans several times in purs of secretarial time were used ning up the subcontractors for the job > - X Data Table Requirements Al operating costs other than professional salaries (travel reimbursements, copy costs, Secretarial salaries, offices 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 Total Usage Total Usage Activity by Corporate by Private Activity Cost Cost Driver Clients Transporation to clients... 9.000 Round-trip mileage to clients. 3.500 miles 11.500 ms Blueprint copying 35,000 Number of copies 250 copies Office Support 210.000 Stare 2.300 secretaria 2700 secretaria 1. Calculate the current indirect cost allocation rate per professional hour 2. Calculate the total amount that would be biled to Law given the current costing structure 3 Calculate the activity cost allocation rates that could be used to locate operating overhead cos to client jobs. 4. Calculate the amount that would be billed to Law using ABC costing 3. Which type of billing system is more fair to clients ? Explain Print Done Total operating overhead $ 254.000
