The Sovak and Levy 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 Sovak engagement and to the Levy engagement using the ABC systkim 2. Compute the operating income from the Sovak engagement and from the Levy engagement using the ABC system Requirement 1. Compute the cost assigned to the Sovak engagement and to the Levy engagement using the ABC system. (Round your answers to the nearest whole dollar.) Sovak Levy Direct labour Indirect costs: Documentation preparation Information technology support Training Total costs Requirement 2. Compute the operating income from the Sovak engagement and from the Levy engagement using the ABC system (Round your answers to the nearest whole dollar. Enter operating losses with parentheses or a minus sign.) Sovak Levy Less: Operating income (loss) Data Table Cost Driver Sovak Levy Direct labour hours 135 135 - - - 65 320 . . Pages.. Applications used. . . . . . 2 . 84 - Data Table ur Real ans Dire Estimated Allocation Activity Cost Base Documentation preparation $ 125,000 pages... Information technology support 170,000 Applications used Training 452,000 Direct labour hours $ 747,000 Total indirect costs Estimated Quantity of Cost Driver Cost Allocation Rate 3,400 pages $ 36.76 per page per 820 applications $ 207.32 application 6,000 hours $ 75.33 per hour ndid Da Int TO Total Real Roll Print Done General Computer Inc. is a technology consulting firm focused on website development and integration of internet business applications. President Arabella Gilardi's ear is ringing after an unpleasant call from client Joe Sovak. Sovak was irate after opening his bill for General Computer's redesign of his company's website. Sovak said that General Computer's major competitor, Delta Systems, charged much lower fees to another company for which Sovak serves on the board of directors. Gilardi is puzzled for two reasons. First, she is confident that her firm knows website design and support as well as any of General Computer's competitors. Gilardi cannot understand how Delta Systems can undercut General Computer's rates and still make a profit. But Delta Systems is reputed to be very profitable. Second, just yesterday Gilardi received a call from client Keegan Levy. Levy was happy with the excellent service and reasonable fees Gilardi charged him for adding a database-driven job-posting feature to his company's website. Gilardi was surprised by Levy's compliments because this was an unusual job for General Computer that required development of complex database management and control applications, and she had felt a little uneasy accepting it. Like most consulting firms, General Computer traces direct labour to individual engagements (jobs). General Computer allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Gilardi is happy with this system, which she has used since she established General Computer in 1997. Gilardi expects to incur $747,000 of indirect costs this year, and she expects her firm to work 6,000 direct labour hours. Gilardi and the other systems consultants earn $395 per hour. Clients are billed at 160% of direct labour cost. Last month, General Computer's consultants spent 135 hours on Sovak's engagement. They also spent 135 hours on Levy's engagement