The Washburn and Bickford engagements tred the following resources last month [Click the icon to view ABC cost allocation ratesi] (Click the icon to viow the background summary). 1. Compute the cont assigned to the Washbum engagement and to the Dicklord engogement uning the NBC system! Requirement 1. Compute the cost assigned to the Washburn engagement and to the Bicklord engagenteol using teie ABC system, (Roupd your answers to the nearest whole dollac) Data table Data table More info Driver Inc. is a technology consulting firm focused on website development and integration of internet business applications. President Susan Jannicky's ear is ringling after an unpleasant call from client Jeremy Washburn. Washbum was irate after opening his bill for Driver's redesign of his company's website. Washburn said that Driver's major competitor, Sigma Applications, charged much lower fees to another company for which Washburn serves on the board of directors. Jannicky is puzzled for two reasons. First, she is confident that her firm knows website design and support as well as any of Driver's competitors. Jannicky cannot understand how Sigma Applications can undercut Driver's rates and still make a profit. But Sigma Applications is reputed to be very profitable. Second, just yesterday Jannicky recelved a call from client Ray Bickford. Bickford was happy with the excellent service and reasonable fees Jannicky charged him for adding a database-driven job-posting feature to his company's website. Jannicky was sucprised by Bickford's compliments because this was an unusual job for Driver that required development of complex database management and control applications, and she had felt a little uneasy accepting it Like mosf consulting firms. Oriver traces direct labour to individual engagements (Jobs). Diver allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Jannicky is happy with this system. More info of directors. Jannicky is puzzled for two reasons. First, she is confident that her firm knows website design and support as well as any of Driver's competitors. Jannicky cannot understand how Sigma Applications can undercut Driver's rates and still make a profit. But Sigma Applications is reputed to be very profitable. Second, just yesterday Jannicky received a call from client Ray Bickford. Bickford was happy with the excellent service and reasonable fees Jannicky charged him for adding a database-driven job-posting feature to his company's website. Jannicky was surprised by Bickford's compliments because this was an unusual job for Driver that required development of complex daftabase management and control applications, and she had felt a little uneasy accepting it. Like most consulting firms. Driver traces direct labour to individual engagements (jobs). Driver allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Jannicky is happy with this system, which she has used since she established Driver in 1996. Jannicky expects to incur $728,000 of indirect costs this year, and she expects her firm to work 6,000 direct labour hours Jannicky and the other systems consultants earn $375 per hour. Clients are billed at 170% of direct labour cost. Last month. Driver's consultants spent 115 hours on Washburn's engagement. They also spent 115 hours on Bickford's engagement
