Grenier & Company's an architectural firm powing in home remodeling for private chants and new office buildings Ann Leo hired Grenier to designer Kitchen remodeling Af 30 professional hours were incured on this in for corporate client Grenier charges customers at a bit rate equal to 136% of the client's total cost. A dients addition, Leo's remodeling job required one of the professionals to avel back and forth to her house for a total of 145 jo cost is a combination of professional time spent on the client (565 per hour cost of employing each miles. The blueprints had to be copied four times because Leo changed the plans several times. In addition, 18 hours of professional and (2) operating overhead allocated to the clients ab. Grenier locales operating overhead to to secretarial me were used ining up the subcontractors for the job. based on professional hours spent on the job Grenier estimates its five professionals winou a total of 10,000 professional hours working on client jobs during the year Read the requirements Click the icon to view the operating cost information) The current indirect cost location rate per professional hour iss Requirement 2. Calculate the total amount that would be billed to Lee given the current costing structure Determine the formula, then calculate the amount that would be billed to Leo given the current costing structure. (Round al amounts to the nearest cont.) Amount biled to client 10 1 Requirement 3. Calculate the activity collection rates that could be used to locate operating overhead costs to client jobs Determine the formula, then calculate the activity cost location rates that could be used to allocate operating overhead costs to client job. Round the rates to the nearest cent) Activity cost a location rate Transportation to clients per me Blueprint copying por copy Office support per secretariat hour Requirement 4. Calculate the amount that would be biled to Leo using ABC costing. Determine the formula then calculate the amount that would be biled to Leo using ABC costing (Round all mounts to the newest cont.) Amount billed to dient Requirements. Which type of billing system is more fair to clients? Explain The biling system is more fair to clients because they are charged according to For example, copying blueprints is Under the fairer system, clients are charged blueprint coples that the job required. The farer system better recognized the extent to which costs thoose from any list or enter any number in the input fields and then continue to the next question dlo ear. Read the requirements on.) Data Table 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 Total Usage Total Usage Activity by Corporate by Private Activity Cost Cost Driver Clients Clients Transporation to clients $ 12,000 Round-trip mileage to clients 5,000 miles 10,000 miles 350 copies 35,000 Number of copies 650 copies Blueprint copying 190,000 Secretarial time 2,300 secretarial Office support 2,700 secretarial hours hours be 237,000 Total operating overhead th Print Done ore fair to clients? Explain. ints because they are charged according to Under the fairer system, clients are charged blueprint coples that their job required. The fairer system better recogniz Alection