Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Below are the indirect overhead costs for Holzman Cleaning Service (Holzman). There are only 12 commercial customers who are billed monthly. Residential customers comprise 150
Below are the indirect overhead costs for Holzman Cleaning Service (Holzman). There are only 12 commercial customers who are billed monthly. Residential customers comprise 150 customers who are billed after each visit.
Expense Cleaning supplies commercial Cleaning supplies residential Billing Transportation Training Operations management Total expenses Cost driver Cost pool Square metres $70,833 Square metres 17,708 Number of invoices 129,500 Number of kilometres 30,281 Number of hours 55,500 Number of managers 120,000 $423,822 Total Commercial Residential activity activity activity 664,054 664,054 442,703 442,703 3,054 1 ,062 1 ,992 53,124 15,937 37,187 554 41 6 138 3 1 2 Holzmann's management reports for each division are usually created using revenue as the method of allocating costs which results in a 60/40 split. Below is the partial prot statement by segment for the period as they are currently prepared: Commercial Residential Sales $492,991 $328,660 Direct labour 175,310 116,874 Cleaning supplies 53,125 35,416 Transportation 18,169 12,112 Salaries operations management 72,000 48,000 Administrative expense (training and billing) 111,000 74,000 Segment prot (loss) Liz 2 Total $821,651 292,184 88,541 30,281 120,000 185,000 MStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started