Please assist me to answer the following questions.
Question 1 Al Consulting Services (AlCS) provides various types of consulting services throughout Fiji. It uses job costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients. Other costs incurred by AlCS, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead rate. Clients are billed for directly chargeable costs, overhead and a markup for the profit margin. The following costs have been anticipated for the coming year: Cost Percentage of cost directly traceable to clients Professional staff salaries $3 000 000 85% Administrative support staff 800 000 60% Travel 400 000 80% Photocopying 90 000 90% Other operating costs 200 000 75% Total $4 490 000 AlCS's management wishes to make a profit of $1 250 000 for the firm and plans to add percentage markup on total cost to achieve that figure. On 23 May, AlCS completed work on a project for Mango Manufacturing. The following costs were incurred: Cost Professional staff salaries $55 000 Administrative support staff 5 000 Travel 6 000 Photocopying 1 200 Other operating costs 2 800 Note: If rounding off is required, round off your figures to 2 d.p. Required: 1. Determine A1CS's total traceable costs for the coming year and the firm's total anticipated overhead. (4 marks) 2. Calculate the predetermined overhead rate, assuming the cost driver is traceable costs. (3 marks) 3. What percentage of cost will AlCS add to each job to achieve its profit target? (3 marks) 4. Determine the total cost of the Mango Manufacturing project. (5 marks) 5. How much Mango Manufacturing would be billed for the services performed? (5 marks) 6. Only 75 per cent of AlCS's other operating cost is directly traceable to specific client projects. Identify three costs that would be included in other operating costs and would be difficult to trace to clients. (3 marks) 7. 85 per cent of the professional staff cost is directly traceable to specific client projects. Give two reasons that would explain why this figure isn't 100 per cent. (3 marks) Question 2 OMG Engineers is a consulting firm that provides design and support services for civil engineering projects. OMG is in the process of preparing a tender for a project involving the extension of the main highway. The tender involves assessing the economic and environmental feasibility of each alternative. OMG estimates tender costs by identifying all costs that are likely to be directly associated with the project. To obtain the final tender bid, the total professional (engineering and scientist) labour costs are marked up by 80 per cent, and all other costs are marked up by 50 per cent. These margins are intended to cover any indirect costs plus provide the required profit margin on the project. The following direct costs has been estimated for the highway project: Input Costs Civil engineers 150 hours $25 000 Environmental scientists 100 hours 15 000 Support labour 120 hours 10 000 Travel 1 000 km 1 000 Computer time 80 hours 2 500 Photocopying, phone, fax 500 Required: 1. Estimate the tender bid for the project. (5 marks) 2. Estimate the profit on the project if the bid is successful and all costs are incurred as planned. (5 marks) 3. Once a project has begun, OMG will use a costing system that tracks all direct costs to projects. If the highway bid is successful, how would managers at OMG use this information? (5 marks) Note: If rounding off is required, round off your figures to 2 d.p