Exercise 22-8 (Part Level Submission) Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: $0 + $5x Grooming supplies (variable) Direct labor (variable) $0 + $13x Overhead (mixed) $9,000 + $1x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. (a) Your answer is correct. Prepare a flexible budget for activity levels of 550, 560, and 660 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget Activity Level 550 560 660 Direct Labor Hours Variable Costs 2750 2800 $1 3300 Grooming Supplies 7150 7280 8580 Direct Labor 8580 7150 7280 Direct Labor 550 Overhead 560 660 10450 Total Variable Costs 10640 12540 Fixed Costs Overhead 9000 9000 9000 9000 9000 Total Fixed Costs 9000 19450 $4 19640 21540 Total Costs $1 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT Attempts: 2 of 15 used (c) & (d) (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 $1 Activity level 2 Activity level 3 (d) The groomers at Rensing normally work a total of 630 direct labor hours during each month. Each grooming job normally takes a groomer 1.3 hours. Milo wants to earn a profit equal to 45% 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 Open Show Work Click if you would like to Show Work for this