GBC Accounting & Tax Consultants Professional Corp, provides tax and accounting professional services to small and medium sized businesses:

Clients are billed on the basis of the individual accountant's hourly rate, plus40% of the professional rate to account for support services [Tax research,Report preparation, Computer time, Billing etc]

Following is the billing detail for a recent month, along with the Overhead Charges:

ProfessionalBillingrate/hourHours per Client File:

Lardner IncWarden CoAlberta CoOverhead

DMork$25015hrs10hrs14hrs20%

LChu15015hrs13hrs12hrs20%

O Carter9512hrs13hrs15hrs20%

Totals42Hrs36Hrs41Hrs

CLIENT BILLING:

Billings:ProfessionalFeesO/H40%TotalBilled to Customer

LardnerInc.$7,140.00$2,856.00$9,996.00

WardenCo$5,685.00$2,274.00$7,959.00

AlbertaCo$6,725.00$2,690.00$9,415.00

In an effort to ensure that client billing reflects a more appropriate share of indir-ect costs, a study was undertaken that provided the following:

Accounting/Clerical$25.00X total CPA hrsper client file

Tax & Accounting Research$20.00 X total CPA hrsper client file

IT: Computer, Softwearetc$500.00 per Client File

Communication/Reporting$275.00per client file

Admin, Marketing, Professional Development$750per client file

Required:Attached is an Excel spreadsheet that is designed to assist in performing the calculations necessary for the above detail.

1. Please use the information from your analysis, and prepare report to the firm management on the manner in which they may proceed in future billing to clients of the firm.

Financial data for Bingham Company for last year appear below:

Bingham Company

Year ended December 31, 2019

Customer:A011B123C234F325G020

Units sold:Cases2,0808,75060,80031,8003,900

ListedPrice:$14.40$14.40$14.40$14.40$14.40

Actual Price:$14.40$14.16$13.20$13.92$12.96

Cost:$11.00$11.00$11.00$11.00$11.00

Net:

Totals

PurchaseOrders1525302530

Cost:

SiteVisits:23623

Cost:

Deliveries1030604020

Distance-KM's1443840

RushOrders02003

Communication:

Phone Calls in hours55151720

E-mails/Letters66556

ActivityCost per Driver Rate

OrderTaking$100per purchase order

Sitevisits$80 per customer

Deliveries$2 per KM

Producthandling$0.50 per case sold

RushOrders$500.00 Rush Order

Required:

1. Compute the Sales and Profitability from each of Bingham's customers in the above category
2. Identify the customers who represent current, or potential problems

1. Make recommendations on how Bingham may proceed with Customers A011, B123, G020, assuming they are all relatively new customers.