Sequoia Partners provides two types of client consulting services: environmental consulting and legal consulting. Consider the following two independent scenarios for Sequoia’s activity usage and cost data:

Required:
1. Calculate the unit-based (i.e., plantwide) overhead rate based on new client meetings and apply overhead costs to each service line.
2. Calculate the activity rate for each activity and apply overhead costs to each service line.
3. Does service line diversity exist in Scenario 1? Briefly explain why or why not.

Required:
4. Calculate the unit-based (i.e., plantwide) overhead costs rate based on new client meetings and apply overhead to each service line.
5. Calculate the activity rate for each activity and apply overhead costs to each service line.
6. Does service line diversity exist in Scenario 2? Briefly explain why or why not.

Scenario 1: Environmental Legal Service Activity Driver Cost Service Line Line Developing Business # of new client meetings $50,000 900 100 Training Researching # of hours training $34,000 1,800 200 # of hours studying $28,000 18,000 2,000 regulations Branding # of conferences attended $39,000 11,700 1,300