The Gabriel and Nanry engagements used the following resources last month: (Click the icon to view the resources used by each engagement.) (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 Nanry engagement using the ABC system. 2. Compute the operating income from the Gabriel engagement and from the Nanry engagement using the ABC system. Requirement 1. Compute the cost assigned to the Gabriel engagement and to the Nanry engagement using the ABC system. (Round your answers to the nearest whole dollar.) Gabriel Nanry Direct labour Indirect costs: Documentation preparation Information technology support Training Total costs Data table Cost Driver Direct labour hours Gabriel Nanry 135 135 Pages..... 65 310 Applications used. 3 85 or Print Done - . X system. (Round your ar Activity Documentation preparation Information technology support Training.. Total indirect costs Estimated. Cost Allocation Base 105,000 Pages......... 170,000 Applications used 464,000 $ 739,000 Direct labour hours..... Estimated Quantity of Cost Driver Cost Allocation Rate $ 30.00 per page 3,500 pages 780 applications $217.95 per application 6,200 hours $ 74.84 per hour Geller Inc. is a technology consulting firm focused on website development and integration of internet business applications. President Holly Miner's ear is ringing after an unpleasant call from client Jerry Gabriel. Gabriel was irate after opening his bill for Geller's redesign of his company's website. Gabriel said that Geller's major competitor, Delta Systems, charged much lower fees to another company for which Gabriel serves on the board of directors. Miner is puzzled for two reasons. First, she is confident that her firm knows website design and support as well as any of Geller's competitors. Miner cannot understand how Delta Systems can undercut Geller's rates and still make a profit. But Delta Systems is reputed to be very profitable. Second, just yesterday Miner received a call from client Robert Nanry. Nanry was happy with the excellent service and reasonable fees Miner charged him for adding a database-driven job- posting feature to his company's website. Miner was surprised by Nanry's compliments because this was an unusual job for Geller that required development of complex database management and control applications, and she had felt a little uneasy accepting it. Like most consulting firms, Geller traces direct labour to individual engagements (jobs). Geller allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Miner is happy with this system, which she has used since she established Geller in 1997. Miner expects to incur $739,000 of indirect costs this year, and she expects her firm to work 6,200 direct labour hours. Miner and the other systems consultants earn $360 per hour. Clients are billed at 170% of direct labour cost. Last month, Geller's consultants spent 135 hours on Gabriel's engagement. They also spent 135 hours on Nanry's engagement.