rome File Edit View History Bookmarks Peoplo Tab Window Help G OS S SSLX S. 25cdb05e75a5a3f2dcf59c559fac1dct46022d2b8d2dcfc1e381adff362b768868d135a79d4eb467a574 * Net YouTube SoundCloud Fifth Third Dank Consumer Cellular S 02 be Socratic Update 1 F Apps Hulu o Timer Notes Course Contents LON-CAPA PROBLEMS (MODULE 11 - PROBLEM 1 [COST Evaluate Feedback Print Curtis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Curtis & Company charges customers at a billing rate equal to 125% of the client's total job cost. A client's total Job cost is a combination of 1) professional cost, based on the professional hours spent on the client's job and the firm's average professional salary, and 2) operating costs. allocated to the client's job, using a "single driver system," with the number of professional hours spent on the job as the cost driver. However, near the end of 2020, Curtis' accountant decided to replace the single driver system for allocating operating costs with an activity-based costing system. For 2021, Curtis estimates its five professionals will work a total of 12,000 hours on client jobs during the year, and their salaries will total $900,000 As part of the new ABC system, the accountant has grouped all of the firm's operating costs (travel reimbursements, copy costs, secretarial salaries, office lease, etc.) into three activities, and has provided the following estimates for these activities: Total Total Usage by Total Usage by Corporate Activity Activity Cost Cost Driver Private Clients Clients Transportation to clients $11,300 Round-trip mileage to 3,400 miles 10,300 miles clients Blueprint copying $34,400 Number of copies 220 copies 800 copies Office support $190,800 Secretarial time 2,400 hours 2,600 hours Total operating costs $236,500 During 2021, Amy Lee hired Curtis & Company to design her kitchen remodeling. A total of 22 professional hours were spent on this job. In addition, Amy's remodeling job required one of the professionals to travel back and forth to her house for a total of 100 miles. The blueprints had to be copied four times because Amy changed the plans several times. In addition, 15 hours of secretarial time were used lining up the subcontractors for the job. REQUIRED (ROUND ALL ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.) Part A [5 tries; 5 points) What would the total cost of Amy Lee's remodeling job have been under the old single-driver system? $3103.42 Submit Answer Incorrect. Tries 2/5 Previous Tries Part B (5 tries; 5 points) What is the total cost of Amy Lee's remodeling Job under the activity-based costing system? $2873 Submit Answer Incorrect. Thes 1/5 Previous Tres Activity Cout Cost Driver Corporate Clients Private Clients 310.200 Round-trte rome File Edit View History Bookmarks Peoplo Tab Window Help G OS S SSLX S. 25cdb05e75a5a3f2dcf59c559fac1dct46022d2b8d2dcfc1e381adff362b768868d135a79d4eb467a574 * Net YouTube SoundCloud Fifth Third Dank Consumer Cellular S 02 be Socratic Update 1 F Apps Hulu o Timer Notes Course Contents LON-CAPA PROBLEMS (MODULE 11 - PROBLEM 1 [COST Evaluate Feedback Print Curtis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Curtis & Company charges customers at a billing rate equal to 125% of the client's total job cost. A client's total Job cost is a combination of 1) professional cost, based on the professional hours spent on the client's job and the firm's average professional salary, and 2) operating costs. allocated to the client's job, using a "single driver system," with the number of professional hours spent on the job as the cost driver. However, near the end of 2020, Curtis' accountant decided to replace the single driver system for allocating operating costs with an activity-based costing system. For 2021, Curtis estimates its five professionals will work a total of 12,000 hours on client jobs during the year, and their salaries will total $900,000 As part of the new ABC system, the accountant has grouped all of the firm's operating costs (travel reimbursements, copy costs, secretarial salaries, office lease, etc.) into three activities, and has provided the following estimates for these activities: Total Total Usage by Total Usage by Corporate Activity Activity Cost Cost Driver Private Clients Clients Transportation to clients $11,300 Round-trip mileage to 3,400 miles 10,300 miles clients Blueprint copying $34,400 Number of copies 220 copies 800 copies Office support $190,800 Secretarial time 2,400 hours 2,600 hours Total operating costs $236,500 During 2021, Amy Lee hired Curtis & Company to design her kitchen remodeling. A total of 22 professional hours were spent on this job. In addition, Amy's remodeling job required one of the professionals to travel back and forth to her house for a total of 100 miles. The blueprints had to be copied four times because Amy changed the plans several times. In addition, 15 hours of secretarial time were used lining up the subcontractors for the job. REQUIRED (ROUND ALL ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.) Part A [5 tries; 5 points) What would the total cost of Amy Lee's remodeling job have been under the old single-driver system? $3103.42 Submit Answer Incorrect. Tries 2/5 Previous Tries Part B (5 tries; 5 points) What is the total cost of Amy Lee's remodeling Job under the activity-based costing system? $2873 Submit Answer Incorrect. Thes 1/5 Previous Tres Activity Cout Cost Driver Corporate Clients Private Clients 310.200 Round-trte