INKA Pty. Ltd. performs consulting services related to e- commerce consulting and information systems in Adelaide, Australia. Relevant information for the required analysis includes: The firm charges clients $125 per consulting hour for consulting services performed; Consulting hours to clients for the year totalled 5000 hours, consisting of: information systems services, 3100 hours; e- commerce consulting, 1900 hours; INKA pays their professional consulting staff $45 per consulting hour. Administrative costs of $342,000 was (and continues to be) allocated to both consulting services based on consulting hours. These costs consist of: o Staff support $180,000 0 In-house computing $136,400 Miscellaneous office charges $ 25,600 $342,000 A recent analysis of staff supports costs found a correlation with the number of clients served. In-house computing varied directly with the number of computer hours logged and miscellaneous office charges varied directly with the number of client transactions. The following table shows the number of clients, computer hours and client transactions for the e-commerce and information systems consulting services: e-commercelnformation systems Total consulting consulting Number of clients served Number of computer hours logged 1800 2600 4400 50 200 250 Number of client transactions 600 400 1000 Required: a) Assume that the firm uses a traditional approach to costing, allocating total administrative costs on the basis of total consulting hours. Calculate the administrative overhead rate (1 mark) ii. Calculate the overall profitability of the firm's (1) e- commerce and (2) information systems consulting services. Use the template provided below. (3 marks) b) Using activity-based costing: Calculate the activity rates for staff support, in-house computing and miscellaneous charges (3 marks) i. Determine the overall profitability of the firm's (i) - commerce and (ii) information systems consulting services using the activity-based costing approach. Use the template provided below (5 marks) What are the implications of the revised costings using ABC when advising management at INKA Ltd. where they should be trying to grow their business? Explain. (1 marks) Provide your answer for Question 4 (a- i) in the space provided below: Provide your answer for Question 4 (a- ii) in the space provided below: commerce contration system sapices Consulting Creed Fees paid to consulting Allocation of admin oveplicad Net profit Provide your answer for Question 4 (b-i) in the space provided below