A service company SUPER CLEAN

4:02 A service company, SUPER CLEAN, provides commercial and releasing. The company is currently using costing wstem. Overhead are located on the direct our hours A Traditional Costing with plant wide method Using traditional costing the company calculated the overhead cost based on 35 000 hours of activity Activity cost pools Estimated cost Receptionist 525.000 Office suche $ 3.000 Gas $2.500 Depreciation Total Required - Part A 1. Calculate the overhead rate using the plant wide method fonetes 2. Calculate the overhead rate using the departmental method for residential and commercial Provide your responses on the spreadsheetitledRequired and r. & Activity Based Costing SUPER CLEAN realise that the traditional method of allocating overhead is not accurate because the gas and depreciation de notvary with direct labour. The company wants to the activity-based costing system to allocate the costs of the receptionist office supplies and crage depreciation to get more accurate cost estimates. This information will help management to pre more accurate quotes and improve the company's profitability Breakdown of costs between commercial and residential cleaning Commercial Activity cost Estimated cost Cost driver allocation of pools location based Receptionist $ 11,000 Direct labour hour Office supplies S 1.500 Dec bour hour 9,000 hour $13.000 KM 110.000 Depreciation S2000 KM 190.000 KM Total S42.500 Residential Total Quantity of Activity cost poole Receptionist Office supplies Estimated cost Cost driver allocation based $12.000 Direct labour hour $ 1.500 Direct labour hour $19.500 KM 522500 KM 6.000 hour 6.000 hour 30.000 KM 100.000 KM Depreciation Total The direct labour is $22/hour and the cleaning supplies (direct materialosti 56.00 per liter. The cleaning supplies are 0.25 liter per labour hour for commercialdeaning and the per labour hour for residential cleaning During the week, SUPER CLEAN worked on twojobs Job 1residential Job 2 commercial Direct labour 125 hours Direct material 0.1 liter per direct labour hour 0.25 liter per direct labour hour KM 1.200 KM Required - Part 3 3. Calculate the overhead rates for each activity cost pool for commercial and residential cleaning Provide your response SUPER CLEAN realise that the traditional method of allocating Overhead is not accurate because the pas and provide netvary with direct labour. The company want to use the att den system to allocate the costs of the receptionist, office supplies, gas and car usage depreciation to get more accurate cost estimates. This information will help management to pre more accurate quotes and improve the company's profitability Break down of costs between commercial and residential cleanings Commercial Activity cost Estimated cost Cost driver allocation Total Quantity of Unit pools based location based Receptionist $ 13.000 Direct labour hour 9.000 hour Office Supplies $1.500 Direct labour hour 9.000 Gas $ 13.000 KM 110.000 KM Depreciation $15.000 130.000 KM 542.500 Total Quantity of Unit Residential Activity cost pools Receptionist Office supplies Estimated cost Cost driver (allocation based $ 12,000 Direct labour hour $1.500 Direct labour hour $19.500 KM 5220 6,000 hour 6.000 hour 30.000 KM 140.000 KM Gas Depreciation Total The direct labour is $22/hour and the cleaning supplies direct material cost is 56.00 per liter. The cleaning supplies are 0.25 liter per labour hour for commercialdeaning and otte per labour hour for residential cleaning During the week, SUPER CLEAN worked on twojobs Job 1 residential Job 2 commerce Direct labour 125 hours 200 hours Direct material 0.15 liter per direct labour hou 0.25 the per direct labour hour 1.700 KM Required - Part : 3. Calculate the overhead rates for each activity cost pool for commercial and residential cleanings. Provide your response on the spreadsheet titled Required . 4. Estimate the total overhead costs and overhead cost per unit hour for each job. 5. Estimate the total costs including direct labour and material and total cost per unit for job fresidential and job 2 (commercial 6. Estimate total cost for jobs 1 and 2 using traditional costing Provide your responses on the spreadsheet titled Required 45. Required - Part 7. Write a memo to the CEO of SUPERCLEAN with your recommendation as to which of the two costing methods (Traditional or Activity Based Costing, they should adopt?Backup your recommendation by including the following discussion points At least two advantages of activity Based Costing At least two disadvantages of Activity Based Costing At least two challenges that can arise in implementing Activity Based Costing The memo should be no more than 250 words, 15 line spacing Arial font and MS Word format 4:02 A service company, SUPER CLEAN, provides commercial and releasing. The company is currently using costing wstem. Overhead are located on the direct our hours A Traditional Costing with plant wide method Using traditional costing the company calculated the overhead cost based on 35 000 hours of activity Activity cost pools Estimated cost Receptionist 525.000 Office suche $ 3.000 Gas $2.500 Depreciation Total Required - Part A 1. Calculate the overhead rate using the plant wide method fonetes 2. Calculate the overhead rate using the departmental method for residential and commercial Provide your responses on the spreadsheetitledRequired and r. & Activity Based Costing SUPER CLEAN realise that the traditional method of allocating overhead is not accurate because the gas and depreciation de notvary with direct labour. The company wants to the activity-based costing system to allocate the costs of the receptionist office supplies and crage depreciation to get more accurate cost estimates. This information will help management to pre more accurate quotes and improve the company's profitability Breakdown of costs between commercial and residential cleaning Commercial Activity cost Estimated cost Cost driver allocation of pools location based Receptionist $ 11,000 Direct labour hour Office supplies S 1.500 Dec bour hour 9,000 hour $13.000 KM 110.000 Depreciation S2000 KM 190.000 KM Total S42.500 Residential Total Quantity of Activity cost poole Receptionist Office supplies Estimated cost Cost driver allocation based $12.000 Direct labour hour $ 1.500 Direct labour hour $19.500 KM 522500 KM 6.000 hour 6.000 hour 30.000 KM 100.000 KM Depreciation Total The direct labour is $22/hour and the cleaning supplies (direct materialosti 56.00 per liter. The cleaning supplies are 0.25 liter per labour hour for commercialdeaning and the per labour hour for residential cleaning During the week, SUPER CLEAN worked on twojobs Job 1residential Job 2 commercial Direct labour 125 hours Direct material 0.1 liter per direct labour hour 0.25 liter per direct labour hour KM 1.200 KM Required - Part 3 3. Calculate the overhead rates for each activity cost pool for commercial and residential cleaning Provide your response SUPER CLEAN realise that the traditional method of allocating Overhead is not accurate because the pas and provide netvary with direct labour. The company want to use the att den system to allocate the costs of the receptionist, office supplies, gas and car usage depreciation to get more accurate cost estimates. This information will help management to pre more accurate quotes and improve the company's profitability Break down of costs between commercial and residential cleanings Commercial Activity cost Estimated cost Cost driver allocation Total Quantity of Unit pools based location based Receptionist $ 13.000 Direct labour hour 9.000 hour Office Supplies $1.500 Direct labour hour 9.000 Gas $ 13.000 KM 110.000 KM Depreciation $15.000 130.000 KM 542.500 Total Quantity of Unit Residential Activity cost pools Receptionist Office supplies Estimated cost Cost driver (allocation based $ 12,000 Direct labour hour $1.500 Direct labour hour $19.500 KM 5220 6,000 hour 6.000 hour 30.000 KM 140.000 KM Gas Depreciation Total The direct labour is $22/hour and the cleaning supplies direct material cost is 56.00 per liter. The cleaning supplies are 0.25 liter per labour hour for commercialdeaning and otte per labour hour for residential cleaning During the week, SUPER CLEAN worked on twojobs Job 1 residential Job 2 commerce Direct labour 125 hours 200 hours Direct material 0.15 liter per direct labour hou 0.25 the per direct labour hour 1.700 KM Required - Part : 3. Calculate the overhead rates for each activity cost pool for commercial and residential cleanings. Provide your response on the spreadsheet titled Required . 4. Estimate the total overhead costs and overhead cost per unit hour for each job. 5. Estimate the total costs including direct labour and material and total cost per unit for job fresidential and job 2 (commercial 6. Estimate total cost for jobs 1 and 2 using traditional costing Provide your responses on the spreadsheet titled Required 45. Required - Part 7. Write a memo to the CEO of SUPERCLEAN with your recommendation as to which of the two costing methods (Traditional or Activity Based Costing, they should adopt?Backup your recommendation by including the following discussion points At least two advantages of activity Based Costing At least two disadvantages of Activity Based Costing At least two challenges that can arise in implementing Activity Based Costing The memo should be no more than 250 words, 15 line spacing Arial font and MS Word format