A service company SUPER CLEAN, provide commercial and residentialdeaning wervice the company is currently using a job costing system overhead are allocated based on the direct labour hours A. Traditional Costing with plant wide method: Bunaditional.cating the companyalatsted the overhead cont based on 16000 hours at activity Activity cost pools Estimated cost Receptionist Office supplies S000 532.500 Depreciation 997 See Total S8100 Required - Part A: Calculate the overhead rate using the plant wide method (onente) Calculate the chwadrate in the departmental method for residential and commercial Allocate 10 000 hours to commercial and 6000 hours to Residential cleaning department Provide your responses on the spreadsheet taled "Required 1 and B. Activity Based Costing SUPER CLEAN realises that the traditional method of allocating overhead is not accurate because the and depreciation do not vary with direct labout. The company wants to use the activity based costing system to allocate the cost of the receptionis, office supplies, and a depreciation in order to get more accurate cost estimates. This information will help management to give more serate Quotes and improve the company's profitability. Break down of costs between commercial and residential cleaning Commercial Activity cott Estimated cost Cost driver (allocation Total Quantity of Unit pools based allocation based Reception S41.000 Direct our hour 10.000 hour Office Supplies 1.500 Direct labourkour 10,000 hour Sa 090 KM 10.000 KM Depreciation 15.00 KM 110.000 KM $12.500 A service company SUPER CLEAN, provide commercial and residentialdeaning wervice the company is currently using a job costing system overhead are allocated based on the direct labour hours A. Traditional Costing with plant wide method: Bunaditional.cating the companyalatsted the overhead cont based on 16000 hours at activity Activity cost pools Estimated cost Receptionist Office supplies S000 532.500 Depreciation 997 See Total S8100 Required - Part A: Calculate the overhead rate using the plant wide method (onente) Calculate the chwadrate in the departmental method for residential and commercial Allocate 10 000 hours to commercial and 6000 hours to Residential cleaning department Provide your responses on the spreadsheet taled "Required 1 and B. Activity Based Costing SUPER CLEAN realises that the traditional method of allocating overhead is not accurate because the and depreciation do not vary with direct labout. The company wants to use the activity based costing system to allocate the cost of the receptionis, office supplies, and a depreciation in order to get more accurate cost estimates. This information will help management to give more serate Quotes and improve the company's profitability. Break down of costs between commercial and residential cleaning Commercial Activity cott Estimated cost Cost driver (allocation Total Quantity of Unit pools based allocation based Reception S41.000 Direct our hour 10.000 hour Office Supplies 1.500 Direct labourkour 10,000 hour Sa 090 KM 10.000 KM Depreciation 15.00 KM 110.000 KM $12.500
