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 130% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client ($62 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.) Abagail Laughlin hired Lambert to design her kitchen remodeling. A total of 30 professional hours were incurred on this job. In addition, Laughlin's remodeling job required one of the professionals to travel back and forth to her house for a total of 150 miles. The blueprints had to be copied four times because Laughlin changed the plans several times. In addition, 20 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements. Determine the formula, then calculate the amount that would be billed to Laughlin given the current costing structure. (Ro Total cost of job Markup percentage 130% = Amount billed to client $ 3,451.50 Data table $ 2,655.00 Requirement 3. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to clie Determine the formula, then calculate the activity cost allocation rates that could be used to allocate operating overhead 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 activity cost pool Transportation to clients $ 9,000 Blueprint copying $ 36,000 Office support $ 220,000 Activity Total Activity Cost Cost Driver Total Usage by Corporate Clients Total activity allocation base = Activity cost allocation 15,000 $ 0.60 per mile Transporation to clients .... $ Blueprint copying 1,000 $ 36.00 per copy Office support 9,000 Round-trip mileage to clients . . 1,500 miles 36,000 Number of copies 220,000 Secretarial time. Total Usage by Private Clients 13,500 miles 350 copies 650 copies 2,900 secretarial hours 2,100 secretarial hours 5,000 $ 44.00 per secreta $ 265,000 Total operating overhead Requirement 4. Calculate the amount that would be billed to Laughlin using ABC costing. Determine the formula, then calculate the amount that would be billed to Laughlin using ABC costing. (Round all amounts Total cost of job Markup percentage = Amount billed to client Print Done