calculate using activity based costing Appendix I Data for three recent jobs Job A Job B Job C Job data Analyst hours $65454$ Analyst salaries $($average $$25$ per hour$)$ $ $1,625$ $ $1,125$ $ $100$ Survey caller hours $030540$ Survey caller wages $($$$15$ per hour$)$ $ $$ $ $450$ $ $8,100$ Job profit Revenue $ $6,000$ $ $6,000$ $$15,000$ Direct costs: Analyst salaries $(1,625)(1,125)(100)$ Survey caller wages $(450)(8,100)$ Overhead allocation Profit before commission $(175)1,2756,520$ Sales commission @ $40\%(510)(2,608)$ Pre$-$tax profit $ $(175)$ $ $765$ $ $3,912$ Job A $$ Analysis of customer preferences: This is representative of a typical analyst job where data is provided by the client and all of LCI$$s work is analysis focused. Job B $$ Satisfaction survey with analysis for a client$$s product in comparison to its competition: LCI collected the data, analyzed the results, and provided the analysis to the client. Job C $$ Customer preferences survey with no analysis for a food manufacturer: This is a recurring job, in which the client provides the survey questions and performs its own analysis of the data. Core $2$ Practice Case $3$ Case $3/4$ Appendix II Budgeted cost allocations Notes Direct costs Overhead Employee salaries and wages: Analyst salaries $(13,000$ hours @ $$25)1$ $ $325,000$ Call centre wages $(44,000$ hours @ $$15)1660,000$ Sales representative commissions $2140,000$ Call centre supervisor salary $3$ $$100,000$ Other general and administrative salaries $4350,000$ Telephone costs $5180,000$ Rent, heat, and lights $675,000$ Depreciation $$ office furniture and equipment $7100,000$ Miscellaneous office expenses $8105,000$ $$1,125,000$ $$910,000$ Allocate overhead based on analyst hours $13,000$ Overhead rate per analyst hour $$70$ Notes: $1.$ Direct wages are traced to individual jobs. $2.$ Commissions are based on $40\%$ of the pre$-$tax profit of the jobs. $3.$ The call centre supervisor manages the work of the survey callers and is paid a flat salary. $4.$ Other general and administrative salaries include items such as head office salaries. $5.$ Telephone costs include approximately $$20,000$ per year for basic local and longdistance telephone services for the office, plus approximately $$160,000$ per year for the call centre. Analysts incur no specific telephone costs. $6.$ Rent, heat, and light costs are for the entire office space. Approximately $30\%$ of the space is used by analysts, $50\%$ by the call centre, and $20\%$ by general administration. The call centre space could easily be subleased to another company in the same building that would like to expand. $7.$ Of the depreciation for office furniture and equipment, approximately $30\%$ relates to the analysts, $40\%$ to the call centre, and $30\%$ to general administration. Assets used by the call centre could be sold for $$1,000.8.$ Miscellaneous office expenses include items such as office supplies, insurance, and so on$.$ Overhead costs include all costs that are not traced directly to jobs. Overhead is allocated to jobs based on activity based costing. LCI completes $60$ surveys a year on average.