5 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 $11.65 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 14 this question using ABC. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The points activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Snow removal Square metres cleaned (@0s) 39, 390 hundred square metres Travel to jobs Kilometres driven 17,900 kilometres Job support Number of jobs 400 jobs Other (costs of idle capacity and organization-sustaining costs) None NA The total cost of operating the company for the year is $435.000. which includes the following costs: Wages $168, 009 Supplies 43,080 Snow removal equipment depreciation 23,080 Vehicle expenses 43,090 Office expenses 66,080 President's compensation 92,080 Total cost $435,080 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activity Cost Pools Snow Travel to Removal Jobs Job Support Other Total Wages 80% 10% 109% Supplies 180% 109% Snow removal equipment depreciation 85% 15 109% Vehicle expenses 65% 35% 109% Office expenses 45% 55% 109% President's compensation 35% 652 109%5 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 14 required.) points Snow Travel to Job Support Other Total Removal Jobs Wages S 0 Supplies 0 Snow removal equipment depr. 0 Vehicle expenses 0 Office expenses 0 President's compensation 0 o Total cost 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Snow removal per hundred square metres Travel to jobs per kilometre Job support per job5 3. The company recently completed a 4.100-square-metre snow removal job at Hometown Hardware-a 81-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 ABC Cost 14 points Snow removal Travel to jobs Job support Total S 0.00 4. The revenue from the Hometown Hardware job was $477.65 (4.100 square metres at $11.65 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 0.00 Product margin S 0.00