Accountant Junk Removal (AJR) has been in business for years.Due to recent poor results, AJR feel that that certain customers are more profitable than other customers are.AJR would like to know what type of customers they should be looking for to help to improve its profit.

It was decided that AJR adopt an Activity Based Costing method to help it better understand the costs associated with its revenue.

The following information was collected based on a study performed by AJR:

Activity Cost Pool Activity Measure Total Activity Junk Removal Per Ibs 500,000 Job Setup Number of jobs 200 Scheduling Per Customer 25 Other Not Applicable Distribution Across Activity Pools Junk Removal Job Setup Scheduling Other Junk Disposal 70% 0% 30% 0% Insurance 40% 10% 40% 10% Wages 40% 10% 35% 15% General Admin 0% 50% 30% 20% Depreciation 40% 10% 40% 10% On-site Supplies 50% 20% 20% 10%Junk Disposal 600,000 Insurance 370,000 Wages 200,000 General Admin 168,000 Depreciation 80,000 On-site Supplies 60,000 Total Costs 1,478,000