Exercise 3B: Calculate activity rates (Activity rates) (Value: 10 points) Pool Services, Inc. is a service company dedicated to the maintenance and cleaning of home pools. Its owner understands that costs depend on the number of gallons of water in the pool, the distance to reach each customer, and the total number of customers. It also depends on whether they are pools of continuous use that require more maintenance or pools of little use that require more maintenance and the cleaning of the filters is considered separate since it requires an hour of work from the employee and specific materials. Required: Use the annual costs and activities summarized below and calculate the rate per activity for each of the cost activities. Actividades de costo Costo total Tasa de actividad $57,000 Low-use pool maintenance Mantetenace of heavily used pools Trips to each pool Trips to each pool Billing and customer service Actividad esperada por cada unidad de medida de nivel de actividad (inductores) 5,000,000 gallons of high-use pool water 1,900,000 gallons of high use pool water 350 filter maintenance 25,000 miles 50 clients $199,800 $36,600 $55,600 $21,600 Exercise 3C: Indirect cost allocation-second stage distribution (Value: 12 points)) Gester Corp. is a company that manufactures various products. The company has defined the following activities and activity rates in its activity-based cost system. Direct labor Machine processing Preparation machine Production order Shipping and handling Producto sustainability $ 8.55 per direct labor hour $ 3.40 per machine our $ 50 each preparation $ 225 for each order $ 100 per shipment $1,000 per product Required: Determine the total indirect cost that would be assigned to each of the following products (X, Y, Z) according to the expected activity level established for each one. Direct labor Processing machine Machine preparation Production order Shipping and handling Sustaining the product X 300 1,400 3 1 4 2 Y 700 1,800 4 5 6 2 z 40 50 3 3 2 2 Exercise 3D: Product and customer profitability analysis (Value: 10 points) LMN Excercise, Inc. manufactures portable infrared saunas. It markets and sells them to gyms and spas who in turn sell them to their individual clients. The company has a generic model but also manufactures models to customer specifications, especially for gyms. The cost activities and their respective rates in the company's activity costing system are as follows: Tasa de actividad $280 por cada diseo Actividad de costo Design with customer specifications Oreder procesing Customer service $215 por orden $475 por cliente $19.80 por hora de mano de obra Direct support labor Management asked you for a profitability analysis for customer Z. You have been provided the following information regarding this customer's orders in the past 12 months. Direct labor rate: $ 21 /hour. Number of saunas Order quantity Number of desing with specifications Direct labor for each sauna Selling Price per sauna Cost of materials per sauna Modelo genrico 10 2 0 31 horas $2,815 $510 Modelo con especificaciones 4 1 4 35 horas $2,730 $635 Required: Calculate the margin or profitability of customer Z
