only need help with problem 3. please show the calculaion steps, i cant seem to figure it out myself. thank you!
Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $170 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $80. Selected information follows. Billable hours to clients for the year totaled 9,000, consisting of information systems services, 5,400; e-commerce consulting. 3,600. Administrative cost of $426,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $226,800; In-house computing. $160,000; and miscellaneous office charges, $39,960. A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data: Information E-Commerce Systems Services Consulting Total Number of clients 270 90 360 Number of computer hours 3,950 2,400 6,350 Number of client transactions 780 870 1,650 Required: 2. Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firm's information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue. 3. Assume that the firm uses activity-based costing. Determine the profitability of the firm's e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue. Required 2 Required 3 Required 4 Assume that the firm uses activity-based costing. Determine the profitability of the firm's e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue. (Round intermediate calculations and final answers to 2 decimal places.) Department Total Billings Income Profitability Information systems services 918,000.00 E-commerce consulting $ 612,000.00 % Required 2 Required 4 >