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Davis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients s charges customers at a billing rate equal to 132% of the client's total job cost A clienrs tatal b cost a combination a Leo's remodeling abre ured one of the professionals to travel back and forth to her house for a total o 30 mies The blueprints had (1) professional time spent on the client (563 per hour cost of employing each professional) and (2) operating overhead aocated to the to be copied four times because Leo changed the plans several times. In addition, 21 hours of secretarial time were used lining up the client's job. Davis allocates operating overhead to jobs based on professional hours spent on the job. Davis estmates its five professionals will incur a total of 10,000 prafessional hours working an client jobs during the year Annabelle Leo hired Davis to design her kitchen remodeling. A total of 20 professional hours were incurred on this job. In addition, subcontractors for the job. Read the raquraments (Click the icon to view the operating cost information ) Requirement 1. Calculate the current indirect cos all ocation rate per professional hour. (Round your answer to the neaesnt) Data Table The current indirect cost allocation rate per professional hour is S All aperating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, oice 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 Requirements Total Usage by Corporate Clients Total Activity Cost Total Usage by Private Clients 1. Caulate the current indirect cost allocation rate per professional hour 2. Calculate the total amount that would be billed to Leo given the current costing structure 3. Caculate the activity cost allaocation rates that could be used to allocate operating ovehead costs Activity Transporation to clients Blueprint copying Office support. Cost Driver S 12,000 Round-trip mileage to clients 2,500 miles 550 copies 12,500 mies to client jobs 4. Calculate the amount that would be biled to Leo using ABC costing 450 copies 2.100 secretarial hours 30,000 Number of copies 90,000 Secretarial ime 5. Which type of billing system is more fair to clients? Explain. 2900 secretarial hours Print Done operating overhead232000 Enter any number in the edit nelds and then click Check Answer Print Done 8 Pemsining Davis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients s charges customers at a billing rate equal to 132% of the client's total job cost A clienrs tatal b cost a combination a Leo's remodeling abre ured one of the professionals to travel back and forth to her house for a total o 30 mies The blueprints had (1) professional time spent on the client (563 per hour cost of employing each professional) and (2) operating overhead aocated to the to be copied four times because Leo changed the plans several times. In addition, 21 hours of secretarial time were used lining up the client's job. Davis allocates operating overhead to jobs based on professional hours spent on the job. Davis estmates its five professionals will incur a total of 10,000 prafessional hours working an client jobs during the year Annabelle Leo hired Davis to design her kitchen remodeling. A total of 20 professional hours were incurred on this job. In addition, subcontractors for the job. Read the raquraments (Click the icon to view the operating cost information ) Requirement 1. Calculate the current indirect cos all ocation rate per professional hour. (Round your answer to the neaesnt) Data Table The current indirect cost allocation rate per professional hour is S All aperating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, oice 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 Requirements Total Usage by Corporate Clients Total Activity Cost Total Usage by Private Clients 1. Caulate the current indirect cost allocation rate per professional hour 2. Calculate the total amount that would be billed to Leo given the current costing structure 3. Caculate the activity cost allaocation rates that could be used to allocate operating ovehead costs Activity Transporation to clients Blueprint copying Office support. Cost Driver S 12,000 Round-trip mileage to clients 2,500 miles 550 copies 12,500 mies to client jobs 4. Calculate the amount that would be biled to Leo using ABC costing 450 copies 2.100 secretarial hours 30,000 Number of copies 90,000 Secretarial ime 5. Which type of billing system is more fair to clients? Explain. 2900 secretarial hours Print Done operating overhead232000 Enter any number in the edit nelds and then click Check Answer Print Done 8 Pemsining
