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The firm, which bills $ 1 6 2 per hour for servictor help for its overworked professional staff. The cost per hour for professional staff

The firm, which bills $162 per hour for servictor help for its overworked professional staff. The cost per hour for professional staff time is $72. Selected information follows.
Billable hours to clients for the year totaled 8,200, consisting of information systems services, 4,920; e-commerce consulting, 3,280.
Administrative cost of $414,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $221,520; in -house computing, $156,000; and miscellaneous office charges, $37,240.
A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:
\table[[,Information,E-Commerce,],[Descriptions,Systems Services,Consulting,Total],[Number of clients,250,70,320],[Number of computer hours,3,670,2,320,5,990],[Number of client transactions,700,830,1,530]]
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3. Assume that the firm uses activity-based costing. Determine the profitability of the firm's information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.
4. Jeffrey Grady, one of the firm's partners, doesn't care where his professionals spend their time because, as he notes, "many c have come to expect both services and we need both to stay in business. Also, information systems and e-commerce profess are paid the same hourly rate." Should Grady's attitude change?
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Assume that the firm uses activity-based costing. Determine the profitability of the firm's information systems and ecommerce activities, expressing your answer both in dollars and as a percentage of activity revenue.
Note: Do not round intermediate calculations. Round income to the nearest whole dollar and profitability to 2 decimal places (i.4=12.34%).ONLY THE INCOME PART FOR REQUIRED IS WRONG AND ECOMMERCE PROFITABILITY PERCENT EVERYTHING ELSE Is CORRECT
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\table[[Department,Total Billings,Income,Profitability,,],[Information systems services,$,797,040,$,157,140,19.71,%
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