The Gabriel and Cabone engagements used the following resources last month (Click the icon to view the resources used by each engagement.) E (Click the icon to view ABC cost allocation rates.) (Click the icon to view the background summary.) 1. Compute the cost assigned to the Gabriel engagement and to the Cabone engagement using the ABC system 2. Compute the operating income from the Gabriel engagement and from the Cabone engagement using the ABC system -EEEE Requirement 1. Compute the cost assigned to the Gabriel engagement and to the Cabone engagement using the ABC system. (Round your answers to the nearest whole dollar.) Gabriel Cabone Direct labour Indirect costs Documentation preparation Information technology support Training Total costs Data table Data table Gabriel Cost Driver Cabone Activity Documentation preparation Intormation technology support Training Estimated Quantity of Cost Driver Cost Allocation Rate 3,300 pages 5 33.33 per page 820 applications $ 207 32 per application 5,000 hours $ 91,20 per hour Estimated Allocation Cost Base $ 110,000 Pages 170,000 Applications used 456.000 Direct labour hours $ 736,000 Direct labour hours 130 130 75 325 Pages Applications used 2 82 Total indirect costs Print Done Print Done X More info Valley Inc is a technology consulting firm focused on website development and integration of internet business applications. President Camilla Weber's ear is ringing after an unpleasant call from client Jerry Gabriel. Gabriel was irate after opening his bill for Valley's redesign of his company's website Gabriel said that Valley's major competitor, Delta Systems, charged much lower fees to another company for which Gabriel serves the board of directors, Weber is puzzled for two reasons. First she is confident that her firm knows website design and support as well as any of Valley's competitors. Weber cannot understand how Delta Systems can undercut Valley's rates and still make a profit. But Delta Systems is reputed to be very profitable Second just yesterday Weber received a call from client Paul Cabone. Cabone was happy with the excellent service and reasonable fees Weber charged him for adding a database-driven job posting feature to his company's website. Weber was surprised by Cabone's because this was an unusual job for Valley that required development of complex database management and control applications, and she had felt a little uneasy accepting it ng firms Valley traces direct labour to individual engagements allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Weber is happy with this system which she has used since she established Valley in 1995 Weber to incur $736,000 of indirect costs this year, and she expects her firm to work 5.000 direct labour hours Weber and the other systems consultants $365 per hour. Clients are billed at 155% of direct labour cost. Last month. consultants spent 130 hours on Gabriel's engagement. They also spent 130 hours on Cabone's engagement. Print Done