Optimum Finance Incorporated provides budget, savings, and investment services to clients who want a stress-free financial lifestyle. The company customizes a program for each client based on their individual goals that includes budget recommendations, investment counseling, and savings techniques. The company uses a job order cost system that keeps track of the cost of the amount of time financial consultants spend with each client.Optimum applies all indirect operating costs (e.g., rent, utilities, and management salaries) as a percentage of the consultant's labor cost. During the most recent year, the firm estimated that it would pay $250,000 to its consultants and incur indirect operating costs of $300,000. Actual consultant labor costs were $268,750 and actual indirect operating costs were $275,000. During the year, Optimum provided 36 hours of consulting services to Robert Howard for which Optimum pays an average of $18 per hour. What is the total cost of providing services to Robert? Multiple Choice$1,361.$1,188.$1,426.$1,311. Carter, Incorporated, uses a traditional volume-based costing system in which direct labor hours are the allocation base. Carter produces two products: Product A, which uses 140,000 direct labor hours, and Product B. which uses 260,000 direct labor hours.Carter is considering switching to an ABC system by splitting its manufacturing overhead cost of $948,000 across three activities:Design, Production, and Inspection. Under the traditional volume-based costing system, the predetermined overhead rate is $2.37 per direct labor hour. Under the ABC system, the cost of each activity and proportion of the cost drivers used by each product are as follows: