Question
BoosterPfizer Sdn Bhd provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the
BoosterPfizer Sdn Bhd provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system.
Activity Cost Pool | Total Cost (RM) | Total Activity |
Cleaning | 442,068 | 78,800 hours |
Job support | 52,801 | 1,900 jobs |
Client support | 9,170 | 350 clients |
Other | 110,601 | Not applicable |
Total | 614,640 |
|
The Other activity cost pool consists of the costs of idle capacity and organizationsustaining costs.
One particular client, the Aisha family, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230.
Required:
- Compute the activity rate for the activity cost pools.
- Using the activity-based costing system, compute customer margin for the of the Maria family.
- Compute the predetermined overhead rate if the company chooses cleaning hours as the allocation base.
- Assume the company decides to use traditional system in which the allocation base of ALL costs is based on cleaning hours. Compute the margin for the Aisha family.
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