Padilla Plant Service completed a special landscaping job for Simon Company. Padilla uses ABC and has the following predetermined overhead allocation rates:

The Simon job included $ 700 in plants; $ 1,200 in direct labor; one setup; and 35 plants.

Requirements
1. What is the total cost of the Simon job?
2. If Simon paid $ 3,900 for the job, what is the operating income or loss?
3. If Padilla desires an operating income of 50% of cost, how much should the company charge for the Simonjob?

Transcribed Image Text:

Predetermined Overhead Activity Allocation Base Allocation Rate Designing Number of designs $275 per desigrn Planting Number of plants 15 per plant