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    "question_id": "4444758",
    "url": "\/study-help\/questions\/grady-and-associates-performs-a-variety-of-activities-related-to-4444758",
    "question_creation_date_js": "2024-06-29T02:03:08-04:00",
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    "meta_title": "[Solved] Grady and Associates performs a variety o | SolutionInn",
    "meta_description": "Answer of - Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toro | SolutionInn",
    "meta_keywords": "grady,associates,performs,variety,activities,related,information,systems,-commerce,consulting,toronto,canada",
    "question_title_h1": "Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $164 per hour",
    "question_title": "Grady and Associates performs a variety of activities related to information systems",
    "question_title_for_js_snippet": "Grady and Associates performs a variety of activities related to information systems and e commerce consulting in Toronto, Canada  The firm, which bills $164 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff  The cost per hour for professional staff time is $74  Selected information follows  Billable hours to clients for the year totaled 8,400, consisting of information systems services, 5,040  e commerce consulting, 3,360  Administrative cost of $417,760 was (and continues to be) allocated to both services based on billable hours  These costs consist of staff support, $222,840  in house computing, $157,000  and miscellaneous office charges, $37,920  A recent analysis of staff support costs found a correlation with the number of clients served  In house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively  A tabulation revealed the following data  Information Systems Services E Commerce Consulting Total Number of clients 255 75 330 Number of computer hours 37402340 6080 Number of client transactions 720 840 1560 2  Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours  Determine the profitability of the firm's information systems and e commerce activities, expressing your answer both in dollars and as a percentage of activity revenue  3 Assume that the firm uses activity based costing  Determine the profitability of the firm's information systems and e commerce activities, expressing your answer both in dollars and as a percentage of activity revenue ",
    "question_description": "<p>Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $164 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $74. Selected information follows.<\/p> <ul> <li>Billable hours to clients for the year totaled 8,400, consisting of information systems services, 5,040; e-commerce consulting, 3,360.<\/li> <li>Administrative cost of $417,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $222,840; in-house computing, $157,000; and miscellaneous office charges, $37,920.<\/li> <\/ul> <p>A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:<\/p> <p> <\/p> <p> Information Systems Services E-Commerce Consulting <sup><\/sup>Total<\/p> <p> Number of clients 255 75 330<\/p> <p> Number of computer hours 37402340 6080<\/p> <p> Number of client transactions 720 840 1560<\/p> <p> <\/p> <p> <\/p> <p><strong>2.<\/strong>Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firm's information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.<\/p> <p>3.Assume that the firm uses activity-based costing. Determine the profitability of the firm's information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.<\/p>",
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    "related_book": {
        "title": "Principles Of Finance",
        "isbn": "979-8439388899",
        "edition": "1st Edition",
        "authors": "Julie Dahlquist, Rainford Knight",
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        "uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899",
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        "edition": "4th\u00a0Edition"
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    "question_posted": "2024-06-29 02:03:08",
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