Joan Martin, CPA provides bookkeeping and tax services to her clients. She charges a fee of $60 per hour for bookkeeping and $90 per hour for tax services. Ms. Martin estimates the following costs for the upcoming year: Office Supplies $16,000 Computer Fees 24,000 Secretarys Salary 30,000 Rent 18,000 88,000 Operating profits declined last year and Ms. Martin has decided to use activity-based costing (ABC) procedures to evaluate her hourly fees. She gathered the following information from last year's records: Activity Levels Activity Cost Driver Bookkeeping Tax Services Office Supplies Hours billed 1,200 800 Computer Fees Computer hours used 400 600 Secretarys Salary Number of clients 16 84 Rent Types of services offered 1 1 Ms. Martin wants her hourly fees for the tax services to be 160% of their activity-based costs. What is the fee per hour for tax services in the upcoming year? (Points : 4)

$70.40 $88.00 $110.00 $118.40