Cost Analysis: Please provide some explanation and calculation.

ASSIGNMENT 1-A CASE: COSTING BUSINESS CONSULTING After graduating you decide to start your own consulting business in Accounting Information Systems (AIS). You acquire two customers for your AIS consulting services: Customer A and Customer B. You contract jobs Al and A2 with customer A, and job B1 with customer B In planning your costing system, you decide that the three contracted jobs are your cost objects. Your major costing objectives are billing your customers for the jobs and assessing job profitability. You choose your cost driver to be the total number of hours worked and hours traveled. For the first year of operations you plan to do all the work on your own. Your budgeted activity data for the forthcoming year is presented in Table 1 below Table 1: Budgeted Activity Data (Annual) Jobs W. Hours T. Hours Total # Visits A1 500 120 620 100 A2 600 220 820 150 B1 900 280 1180 80 Total 2000 620 2620 330 W. Hours- Work hours to serve customers at t T. Hours Hours traveled to customer premises # Visits-Number of visits to customer premises heir premises and from the central office Your budgeted office, utilities, systems equipment and travel costs are given in Table 2 below: TABLE 2: BUDGETED OFFICE, UTILITIES, SYSTEMS, EQIPMENT& TRAVEL COSTS Office space (Rent): S2,000 (Monthly) Electricity: Systems Telecommunications: S 700 (Monthly) Equipment (Leased): S 400 (Monthly) Travel Costs S 600 (Monthly) S 800 (Monthly) on Total Costs: $5,000 (Monthly) x 12 months = $60,000 (Annual)