Determine the predetermined overhead rate under traditional costing. (Round answer to 2 decimal places, e.g. 12.25.)

Predetermined overhead rate

$enter the predetermined overhead rate in dollars per labor hour rounded to 2 decimal places /labor hour

Determine the amount of overhead assigned to the average residential job using traditional costing based on labor hours. (Round answer to 2 decimal places, e.g. 12.25.)

Amount of overhead assigned

$enter the amount of overhead assigned in dollars rounded to 2 decimal places

Determine the activity-based overhead rates for each cost pool. (Round answers to 2 decimal places, e.g. 12.25.)

		Activity Based Overhead Rate
Plowing		$enter a dollar amount per square yard rounded to 2 decimal places	per square yard
Snowthrowing		$enter a dollar amount per linear foot rounded to 2 decimal places	per linear foot

Determine the amount of overhead assigned to the average residential job using activity-based costing. Assume that the average residential job has 20 square yards of plowing and 60 linear feet of snow throwing. (Round answer to 2 decimal places, e.g. 12.50.)

Amount of overhead assigned

$enter the amount of overhead assigned in dollars rounded to 2 decimal places

Sheffield Company operates a snow-removal service. The company owns five trucks, each of which has a snow plow in the front to plow driveways and a snow thrower in the back to clear sidewalks. Because plowing snow is very tough on trucks, the company incurs significant maintenance costs. Truck depreciation and maintenance represents a significant portion of the company's overhead. The company removes snow at residential locations, in which case the drivers spend the bulk of their time walking behind the snow- thrower machine to clear sidewalks. On commercial jobs, the drivers spend most of their time plowing. Sheffield assigns overhead based on labor hours. Total estimated overhead costs for the year are $44,580. Total estimated labor hours are 1,000 hours. The average residential property requires 0.5 hours of labor, while the average commercial property requires 2.5 hours of labor. The following additional information is available. Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Cost Drivers Plowing Square yards of surface plowed $39,780 221,000 Snowthrowing Linear feet of sidewalk cleared $4,800 60,000