Prague and Associates provides consulting and tax preparation services to its clients. It charges a $200 fee per hour for each service. Consulting Total ax | $260,000 540,000 800,000 Revenue Overhead Costs: 300,000 500,000 Profit before DL cost Compute the income statement using direct labor hours as the allocation base for overhead. The firm is considering ABC for cost allocation: Activity Level Total x Preparation Overhead Cost Cost Driver Base Consulting Secretarial Support #of clients 72 48 transactions w/clients Supplies 200 300 Computer Costs computer hrs 1000 600 Consulting Total x |$260,000 800,000 Revenue 540,000 Allocation Overhead Costs: Rate Secretarial Support 160,000 Supplies Computer Costs 80,000 60,000 Profit before DL cost 500,000 Determine the total activity level for each cost driver. Determine the allocation rate for each cost driver Compute the income statement using the three cost drivers