14 5 points 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 $12.80 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 Cost Pool Snow removal Travel to jobs Job support Other (costs of idle capacity and organization sustaining costs) Activity Measure. Square metres cleaned (00s) Kilometres driven Number of jobs None The total cost of operating the company for the year is $510,000, which includes the following costs: Activity for the Year 41,800 hundred square metres 24,400 kilometres NA 200 jobs Wages Supplies Snow removal equipeent depreciation Vehicle expenses office expenses President's compensation Total cost $198,000 48,000 28,000 48,000 76,000 112,000 $510,000 5 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activity Cost Pools Snow Travel to 14 Removal Jobs Job Support Other Total points Mages 70% 20% ex 10% 100% Supplies 100% ex ex 0% 100% Snow removal equipment depreciation. 80% ex ox 20% 100% Vehicle expenses 0% 70% ex 30% 100% office expenses ex ex 40% 60% 100% President's compensation ex 45% 55% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a O wherever it is required.) Wages Suppies Snow removal equipment dopr Vehicle expenses Office expenses President's compensation Total cost Snow Removal Travel to Jobs Job Support Other Total 5 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool 14 Snow removal points Travel to jobs Job support Activity Rate per hundred square metres per kilometre per job 3. The company recently completed a 5,100-square-metre snow removal job at Hometown Hardware-a 91-kilometre round-trip journey from Kenosha's offices. Compute the cost of this job using the ABC system. (Round your answers to 2 decimal places.) Activity Cost Pool Snow removal Travel to jobs Job support Total ABC Cost 4. The revenue from the Hometown Hardware job was $652.80 (5,100 square metres at $12.80 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 5. This part of the question is not part of your Connect assignment. 6. This part of the question is not part of your Connect assignment.