(1) prepare the first stage of the allocation of cost to the activity cost pools (do not leave any empty spaces and put 0 where it is required). (2) compute the activities for the activity cost pools (round your answer to two decimal places). (3) The company recently completed of 4600 m snow removal job at Hometown hardware a 86 km round trip journey from Kenosha's offices. Compute the cost of this job used in the ABC system (round your answers to two decimal places). (4) The revenue from the hometown hardware job was $565.80 (4600 m at $12.30 per hundred square metres). Prepare our portster in the margin from this job (round your answers to two decimal places).
Kenosha Winter Services is a small, family-owned snow-removal business. For its services, the company has always charged a flat fee per hundred square metres of snow removal. The current fee is $12.30 per hundred square metres. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on more remote properties that require considerable travel time. The owner's daughter, home from school for the summer, has suggested investigating 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: Activity for the Year Activity Cost Pool Activity Measure Square metres cleaned (00s) 38, 800 hundred square metres Snow removal 27, 380 kilometres Travel to jobs Kilometres driven Number of jobs 200 jobs Job support Other (costs of idle capacity and organization-sustaining None NA costs) The total cost of operating the company for the year is $472,500, which includes the following costs: Wages $183, 000 Supplies 45, 500 Snow removal equipment depreciation 25, 500 Vehicle expenses 45, 500 Office expenses 71, 000 President's compensation 102, 000 Total cost $472, 500 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activity Cost Pools Snow Travel to Removal Jobs Job Support Wages Other Total 70% 20% Supplies 10% 100% 100% 0% Snow removal equipment depreciation 0% 100% 80% 0% Vehicle expenses 20% 100% 0% 70% Office expenses 0% 309% 100% 10% President's compensation 40% 60% 109% 0% 45% 55% 100% on. Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so