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Kushner & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. Kushner charges customers at a biling rate equal to 130% of the client's total job cost. A cler's total job cost is a combination of (1) professional time spent on the client (563 per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. Kushner allocates operating overhead to jobs based on professional hours spent on the job. Kushner estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year (Ook the loon to view the operating costit Yimeng U Hed Kushner to design her kitchen remoding. A st of 25 professional hours were incurred on the job in addition, us remodeling job required one of the professionals to track and forth to her house for a total of 125 miles. The buprevis had to be copied four times because Li changed the plans several times in addition, 15 hours of secretarial time were used ning up the subcontractors for the Read the s CHED Requirement 1. Calculate the current indirect cost afocationale per professional hour (Round your answer to the nearest cent The current indirect cost location rate per professional hour is Data table All operating costs other than professional salaries travel reimbursements, copy costs, seal salaries office lease, and so forth) can be assigned to the tree activities Total acuity cost drivers, and bite usage of those cost drivers are estimated as follows Activity Total Usage by Corporate Clients Total Usage by Private Clients Total Activity Cost Cost Driver Round 4,500 miles 32.000 Number of copies 250 cop 2.500 secretar hours 700 2.500 sal hours Transperation to clients.3.000 cles Blueprint copying... Office support... $233,000 Total operating overhead, 10.500 Out max boln Print Done Clear all Check answer Kushner & Company is wchtectural fm specieling in hume remodeling for private cents and new office buildings for corporate clients. Kushner charges customers i equal to 130% of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client (363 per hour cost of employing each professional) and (2) operating overhead allocated) the client's job. Kushner allocates operating overhead to jos based on professional hours spent on the job Kushner estimates its five professionals will incur a total hours working on client jobs during the year (Click the on to view the operating coal information) ssional Yimang Lired Kushner to designs har schen remodeling A total of 25 professional hours were incumed on to of 125 miles The blueprints had to be copied fove mes because hanged the plans i addon, 15 hours of secretarial e were used ining up the subcontractors for the job. house Requirement 1. Calculate the current indirect cost allocation The current indirect cost alocation rate per professional hour Requirements 1. Calculate the current indirect cost allocation rate per professional hour 2. Calculate the total amount that would be billed to Li given the oument costing structure 3. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs 4 Calculate the amount that would be billed to Li using ABC costing 5. Which type of billing system is more fair to clients? Explain Print Done X Holiday Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur $970,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 machine hours. Click the icon to view the additional information about the hazardous waste disposal fees.) Expected usage and costs for manufacturing overhead activities for the upcoming year are as fol (Click the icon to view the expected usage and costs.) During the year, Job 356 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 356.) Read the requirements Requirement 1. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. Begin by calculating the plantwide overhead rate. First identify the formula used to compute the plantwide overhead rate, then compute the rate. (Abbreviations used: MOH manufacturing overhead, mig manufacturing) Plantwide mig, overhead rate Data table 290 pounds of direct materials at $35 per pound 20 direct labor hours used at $20 per labor hour 60 machine hours used 9 change orders 60 pounds of hazardous waste generated Print Done Requirements 1. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. 2. 1 Calculate the cost of Job 355 using activity-based costing If you were a manager, which cost estimate would provide you more useful information? How might you use this information? Print Done Holiday Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur $970,000 in total manufacturing overhead costs in the upcoming year and will use 10.000 machine hours Click the icon to view the additional information about the hazardous waste disposal fees.) Expected usage and costs for manufacturing evenead activities for the upcoming year are as follows (Click the icon to view the expected usage and costs. During the year, Job 356 is started and completed Usage for this job follow (Click the icon to view the usage for Job 356) Read the requirements Requirement 1. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours Begin by calculating the plantwide overhead rate. First idensfy the formula used to compute the plantwide overhead rate, then compute the rate. Abbreviations used: MOH manufacturing overhead my manufacturing) Plantwide mig overhead rate Data table Description of Cost Pool Estimated Cost Cost Driver Estimated Activity for this Year Machine maintenance costs $ 400,000 Number of machine hour 10.000 Engineering change orders $ 150,000 Number of change orders 3,000 Hazardous waste disposal $ 420,000 pounds of hazardous materials generated 1,500 $ 970,000 Total overhead cost Print Done Clear all Check

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