QUESTION 9

1. Summer 20 Company, an attorney office, uses a single plant wide rate with direct labor as the base.
   The company has decided to use an ABC System and has identified the two activites below.
   Activity	Allocation Base	Estimated Costs	Estimated Quantity
   Travel	Miles Driven	$105,000	3,800	miles
   IT SUPPORT	Direct Labor Hours	$55,000	1,200	DLH
   Direct Labor Rate per hour		$250
   Client billing rate based on cost		140%
   Miles driven for Client A job		150
   1. What is the predterminted allocation rate per mile for travel?
   2. How much Travel cost would be allocated to Client A?
   YOU MUST SHOW AND LABEL WORK FOR CREDIT.