Information relating to Geller Inc. follows: (Click the icon to view the company's information.) 1. Compute Geller's indirect cost alocation rate 2. Compute the total costs assigned to the Minkle and Levy engagements 3. Compute the operating income from the Minkle and Levy engagements. Requirement 1. Compute Geller's indirect cost allocation rate. First identify the formula used to compute the indirect cost allocation rate, then compute the rate. (Round your answer to two decimal places.) Indirect cost allocation rate (per hr) Requirement 2. Compute the total costs assigned to the Minkle and Levy engagements. (Round your answers to the nearest whole dollar.) Levy Minkle Total costs Requirement 3. Compute the operating income from the Minkle and Levy engagements. (Round your answers to the nearest whole dollar.) Loss Operating income Minkle Levy Geller Inc. is a technology consulting firm focused on website development and integration of internet business applications. President Priscilla Gilardi's ear is ringing after an unpleasant call from client James Minkle. Minkle was irate after opening his bill for Geller's redesign of his company's website. Minkle said that Geller's major competitor, Sigma Systems, charged much lower fees to another company for which Minkle serves on the board of directors. Gilardi is puzzled for two reasons. First, she is confident that her firm knows website design and support as well as any of Geller's competitors. Gilardi cannot understand how Sigma Systems can undercut Geller's rates and still make a profit. But Sigma Systems is reputed to be very profitable. Second, just yesterday Gilardi received a call from client Raymond Levy. Levy was happy with the excellent service and reasonable fees Gilardi charged him for adding a database-driven job- posting feature to his company's website. Gilardi was surprised by Levy's compliments because this was an unusual job for Geller that required development of complex database management and control applications, and she had felt a little uneasy accepting it. Like most consulting firms, Geller traces direct labour to individual engagements (jobs). Geller allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Gilardi is happy with this system, which she has used since she established Geller in 1995. Gilardi expects to incur $722,000 of indirect costs this year, and she expects her firm to work 5,100 direct labour hours. Gilardi and the other systems consultants earn $360 per hour. Clients are billed at 175% of direct labour cost. Last month, Geller's consultants spent 100 hours on Minkle's engagement. They also spent 100 hours on Levy's engagement.