Selected information on billable hours expected for the next year follows:

$\backslash$table$[[,$Billable,Audit Hours,Billable,Advising Hours,Total Bi$,\backslash$table$[[$ble Hours$],[$Manager$]]],[$Client $01,\backslash$table$[[$Staff$],[150]],$Manager,Staff,Manager,,$\backslash$table$[[$Manager$],[22]]],[$Client $02,\backslash$table$[[150],[70]],\backslash$table$[[12],[10]],200,10,\backslash$table$[[\backslash$table$[[350],[70]]]],\backslash$table$[[\backslash$table$[[22],[10]]]]],[$Client $03,\backslash$table$[[\backslash$table$[[70],[220]]]],\backslash$table$[[10],[30]],\backslash$table$[[0],[80]],\backslash$table$[[\backslash$table$[[0],[15]]]],\backslash$table$[[300]],\backslash$table$[[10],[45]]],[$client $49,,30,80,,,],[\backslash$table$[[$Client $49],[$Client $50]],40,2,0,0,40,2],[\backslash$table$[[$Client $50],[$Total$]],\backslash$table$[[300],[8\mathrm{.}500]],\backslash$table$[[20],[1\mathrm{.}200]],\backslash$table$[[200],[9\mathrm{.}500]],15,500,35],[,8,500,1,200,9,500,800,18,000,2,000]]$

Although not all clients use A&R for both services, about $70$ percent do$.$

$A$&$R$ bills audit services batsed on billable hours and advising services at a fixed fee. The cost for audit services is determined by multiplying the billable hours by the quoted employee rates. Staff rates for the following year are $$200$ per hour, and manager rates are $$500$ per hour. The rates are set to meet the competition in the area.

To determine the cost $($not the price$)$ of the job, A&R uses a job costing system. To the employee costs $($not the billing rates$)$ is added an amount for overhead based on the predetermined rate and the billable hours in the job. The predetermined rate is based on expected billable hours.

Total revenue at A&R next year is expected to be $$8$ million.

The two founding partners of A&R are looking at these forecasts for next year and trying to decide whether to drop one of these services. $"$We should probably become more focused, as we sometimes remind our clients."

Required:

a$.$ What is the predetermined overhead rate for costing jobs in the following year?

b$.$ How much will Client $02$ be billed for audit services next year?

c$.$ How much will the job costing system report as the cost of Client $02$ audit services next year?

d$.$ What will be the total revenues from audit services next year based on the expected hours and the billing rates?

e$.$ Based on the job costing system, what will the reported cost of audit services be next year?

f$.$ Based on the job costing system, what will be the cost of advisory services?

g$.$ What is the expected profit of audit services next year?

h$.$ What is the expected profit of advisory services next year?

Complete this question by entering your answers in the tabs below.

Req $B$ and $C$

Req $E$ and $F$

Req $G$ and $H$