K Lambert & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Lambert charges customers at a billing rate equal to 140% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client ($65 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Lambert allocates operating overhead to jobs based on professional hours spent on the job. Lambert estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year. (Click the icon to view the operating cost information.) Annabelle hours wer profession had to be 15 hours c Read the m Requirement 1. Calculate the current indirect cost allocation rate per professional hour. (Round your answer to the nea The current indirect cost allocation rate per professional hour is $26.40 Requirement 2. Calculate the total amount that would be billed to Little given the current costing structure. Determine the formula, then calculate the amount that would be billed to Little given the current costing structure. (Roun = Amount billed to client x Requirement 1. Calculate the current indirect cost allocation rate per professional hour. (Round your answer to the nearest cent.) The current indirect cost allocation rate per professional hour is $26.40 Requirement 2. Calculate the total amount that would be billed to Little given the current costing structure. Determine the formula, then calculate the amount that would be billed to Little given the current costing structure. (Round all amounts to the nearest cent.) Amount billed to client for private clients t a billing rate equal to (1) professional time (2) operating overhead ased on professional total of 10,000 Annabelle Little hired Lambert to design her kitchen remodeling. A total of 20 professional hours were incurred on this job. In addition, Little's remodeling job required one of the professionals to travel back and forth to her house for a total of 140 miles. The blueprints had to be copied four times because Little changed the plans several times. In addition, 15 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements. Requirements fes 1. Calculate the current indirect cost allocation rate per professional hour. 6.40 2. 3. give 4. o Litt Calculate the total amount that would be billed to Little given the current costing structure. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs. Calculate the amount that would be billed to Little using ABC costing. 5. Which type of billing system is more fair to clients? Explain. Amo Print Done - X