PR 5-50 (Algo) Activity-Based Costing; Analysis of Operations (LO 5-1, 5-2, 5-4, 5-5, 5-7, 5-1 Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $146 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staffThe cost per hour for professional staff time i $56. Selected information follows. consulting, 2,640. Billable hours to clients for the year totaled 6,600, consisting of information systems services, 3,960; e-commerce Administrative cost of $390,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $210,960; in-house computing, $148,000, and miscellaneous office charges, $31,800. 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: Descriptions Number of computer hours Number of client transactions Number of clients Required: Information Systens Services E-Commerce Consulting 75 Total 255 3,110 540 2,160 338 5,270 750 1,298 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