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Caerealis Corporation is a firm of Certified Public Accounts and Certified Management Accounts performing tax planning and management consulting services for corporate clients. Caerealis Corporation

Caerealis Corporation is a firm of Certified Public Accounts and Certified Management Accounts performing tax planning and management consulting services for corporate clients. Caerealis Corporation is bidding on two jobs, one for MNO, Inc. and one for WXY, Inc.

The MNO, Inc. job will require 14 partner hours and 28 associate hours for tax planning, and 29 partner hours and 84 associate hours for management consulting services. The WXY, Inc. job will require 7 partner hours and 21 associate hours for tax planning, and 13 partner hours and 210 associate hours for management consulting services. The cost per partner hour is $120; the cost per associate hour is $60.

Research support labor is expected to cost $780 for both jobs, and to require 20 research hours for MNO, Inc. and 10 research hours for WXY, Inc. Travel is expected to cost $2,400 for both jobs, and to require 24 travel hours for MNO, Inc. and 12 travel hours for WXY, Inc. General administrative costs are expected to total $11,550 for both jobs and will be allocated based on total professional (partner and associate) hours.

Compute the cost variance for the MNO, Inc. Job using Activity Based Costing versus a simple costing system. (State the answer as Total Cost per Activity Based Costing less Total Cost per Simple Costing.)

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