Question Help Lambert & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Lambert charges customers at a billing rate equal to 132% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client ($60 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Lambert allocates operating overhead to jobs based on professional hours spent on the job. Lambert estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year. B3 (Click the icon to view the operating cost information) Ann Laughlin hired Lambert to design her kitchen remodeling. A total of 30 professional hours were incurred on this job. In addition, Laughlin's remodeling job required one of the professionals to travel back and forth to her house for a total of 140 miles. The blueprints had to be copied four times because Laughlin changed the plans several times. In addition, 17 hours of secretarial time were used lining up the subcontractors for the job. Read the requirements Requirement 1. Calculate the current indirect cost allocation rate per professional hour (Round your answer to the nearest cent) The current indirect cost allocation rate per professional hour is $ 25.40 Requirement 2. Calculate the total amount that would be billed to Laughlin given the current costing structure Determine the formula then calculate the amount that would be billed to Laughlin given the current costing structure (Round all amounts to the nearest cent.) Total cost of job Markup percentage Amount billed to client = $ 3.38.1 84 256200 132% Requirement 3. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs Enter any number in the edit fields and then click Check Answer Check Answer All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office 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: Total Activity Total Usage by Total Usage by Private Activity Cost Cost Driver Corporate Clients Clients Transporation to clients $ 9.000 Round-trip mileage to clients 3,000 miles 12.000 miles Blueprint copying 30 000 Number of copies 450 copies Office support 215.000 Secretarial time 2 100 secretariat hours 2.900 secretarial Hours $ 254 000 Total operating overhead 550 copies 1. 2. 3. Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Laughlin given the current costing structure. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs Calculate the amount that would be billed to Laughlin using ABC costing Which type of billing system is more fair to clients? Explain 4. 5. Print Done