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

The Briggs job included $ 650 in plants; $ 1,500 in direct labor; one design; and 35 plants.

Requirements
1. What is the total cost of the Briggs job?
2. If Briggs paid $ 4,000 for the job, what is the operating income or loss?
3. If Pratt desires an operating income of 40% of cost, how much should the company charge for the Briggsjob?

Transcribed Image Text:

Predetermined Overhead Allocation Rate Activity Designing Planting Allocation Base Number of designs Number of plants $250 per design $ 20 per plant