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1 Kenosha Winter Services is a small, family-owned snow-removal business. For its services, the company has abas darged per hundred square metres of snow removal.
1 Kenosha Winter Services is a small, family-owned snow-removal business. For its services, the company has abas darged per hundred square metres of snow removal. The current fee is $1270 per hundred square metres. However, there is some que about whether the company is actually making any money on jobs for some customersparticularly those located on me properties that require considerable travel time. The owner's daughter, home from school for the summer, has suggested es this question using ABC. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate the activity cost pools and their activity measures appear below: rences Activity Cost Pool Snow removal Travel to jobs Job support Other (costs of idle capacity and organization-sustaining costs) Activity Measure Square metres cleaned (ees) Kilometres driven Number of jobs 43,6ee hundred 25.35 zee jos None The total cost of operating the company for the year is $532,500, which includes the following costs $207,000 49,500 29,500 49,500 79,690 Wages Supplies Snow removal equipment depreciation Vehicle expenses office expenses President's compensation Total cost $532,500 Snow Wages Supplies Snow removal equipment depreciation Vehicle expenses Office expenses President's compensation Distribution of Resource Consumption across Activity Cost Pools Travel to Removal Jobs Job Support 70% Other 20% 0% 100% 10% 0% 8% 80% 0% 0% 0% 28% 0% 70% 0% 30% 0% 0% 40% 68% 0% 0% 45% 55% Total 180 1887 1805 180 100% 1883 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues. on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. (Do not leave any empty Tequiredit paces; input a 0 wherever Travel to Jobs Snow Removal Job Support Other Total Wages Supplies Snow removal equipment depr. Vehicle expenses affiro avnancac Next > Saved 1 Snow removal equipment depr. Vehicle expenses Office expenses President's compensation Total cost 10 points References 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) WWWWWW - Activity Cost Pool Snow removal Travel to jobs Job support Activity Rate per hundred square metres per kilometre per job 3. The company recently completed a 5,400-square-metre snow removal job at Hometown Hardware-a 94. dometer journey from Kenosha's offices. Compute the cost of this job using the ABC system (Round your answer 10 polnts ABC Cost Activity Cost Pool Snow removal Travel to jobs Job support Total References 4. The revenue from the Hometown Hardware job was $685.80 (5,400 square metres at $1270 per hundred squarem a report showing the margin from this job. (Round your answers to 2 decimal places.) Sales Costs: Snow removal Drov 1 of 2 Next > 4. The revenue from the Hometown Hardware job was $685.80 (5,400 square metres at $1270 per hundred square metres) Prepare a report showing the margin from this job. (Round your answers to 2 decimal places.) Sales Costs Snow removal Travel to jobs Job support Product margin
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