Question
Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Grooming supplies (variable) Direct labour (variable) Overhead (mixed) Y $0+
Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Grooming supplies (variable) Direct labour (variable) Overhead (mixed) Y $0+ $3x y $0 +$12x $9,240+ $1x Puli, the owner, has determined that direct labour is the cost driver for all three categories of costs. Prepare a flexible budget for activity levels of 550, 560, and 660 direct labour hours. (List variable costs before fixed costs.) DOGGONE GROOMERS Flexible Budget Activity Level Direct Labour Direct Labour Hours Fixed Costs Grooming Supplies Overhead Total Costs Total Fixed Costs Total Variable Costs Variable Costs $ DOGGONE GROOMERS Flexible Budget Calculate the total cost per direct labour hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, e.g. 10.25.) Activity level 1 Activity level 2 Activity level 3 $ The groomers at Doggone normally work a total of 625 direct labour hours during each month. Each grooming job normally takes a groomer 1.25 hours. Puli wants to earn a profit equal to 30% of the costs incurred. Determine what she should charge each pet owner for grooming. (Round answer to 2 decimal places, e.g. 10.25.) Charge per client
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