please do C and D

1. Mike K. provides consulting and tax preparation services to clients. Mike charges a fee of $100 per hour for each service and can devote a maximum of 4,000 hours annually to his clients. He reported the following revenues and expenses for 2014: $400,000 Revenue Expenses (all overhead): Secretarial support Supplies Computer costs Net income $84,000 72,000 48.000 $196,000 Being an accountant, Mike kept good records of the following data for 2014: Revenues Direct labour hours Tax Preparation $130,000 1,300 Consulting $270,000 2,700 a. Mike is trying to determine the profitability of each of the services he provides so he can better allocate his time! Determine the profit per labour hour of each service if Mike were to allocate all the overhead costs using direct-labours as the only overhead cost driver. b. Mike collected the following additional information: Overhead cost Secretarial support Supplies Computer costs Cost driver Number of clients Transactions with clients Computer hours Tax 72 200 1,000 Activity Level Consulting 48 300 600 Total 120 500 1,600 Determine the profit per labour hour of each service if Mike were to allocate all the overhead costs using activity-based costing and the three cost drivers above, i.e., number of clients, number of transactions with clients, and computer hours. c. If Mike were to use your analysis in "b" to emphasize one service over the other, how would that compare to the analysis in "a"? How might Mike's product/service emphasis decision based on your analysis in part "a" above be different if he were to use your analysis in part "b" instead? d. Are there any caveats you would point out to Mike about using the analyses above in parts "a" and "b" to decide which, if any, service he should emphasize