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Can you please help me with this problem? Thank you! Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following
Can you please help me with this problem? Thank you!
Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: y Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y $0 + $5x $0+ $14x $9,400 + $2x = Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Your answer is partially correct. Prepare a flexible budget for activity levels of 520,590, and 680 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget el r Hours 520 590 680 sts Supplies 2,600 i $ 2,950 i $ 3,400 i or 7,280 i 8,260 i 9,520 i 520 590 680 ole Costs 10.400 11,800 13,600 9,400 i 9,400 9,400 Costs 9,400 i 9,400 i 9,400 i $ 19,800 $ 21,200 $ 23,000 X Your answer is incorrect. (c) Calculate the total cost per direct labor hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, e.g. 10.25.) Activity level 1 $ 38.08 Activity level 2 $ 35.93 Activity level 3 $ 33.82 (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 30% of the costs incurred. Determine what he should charge each pet owner for grooming. (Round answer to 2 decimal places, e.g. 10.25.) Charge per client $ 62.79Step by Step Solution
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