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Good stuff. But I believe w e can still try t o calculate subscription profitability instead o f leaving i t unknown. can you try?

Good stuff. But I believe we can still try to calculate subscription profitability instead of leaving it unknown. can you try? Isit possible to use predetermined overhead rate and employee wage rate for one hour (assumingno materials are used for maintenance)to calculate possible profitability of subscriptions?
( The Revenue part--from the last tutor answer-- is incorrect. Keep in mind that it says that there was only one hour of maintenance required on each job. But each job can have several employees on it. The last expert that answered made it seem as if more than one hour was dedicated to each order. Please redo. Thank you.)
What is the deal? is a company in West Windsor, NJ operated by Pam Smith. The company
has two activities. Here are the facts:
A. Subscriptions:
The company provides maintenance of the equipment including back-ups and charges $50 weekly.
B. Technical repairs:
These repair services are priced $100 per hour plus materials. The materials are charged 20% over the
purchase price and the employees are paid $30 per hour. The overhead for 2024 was estimated to be
$20,000, and the estimated hours of labor 2,000. The company allocates the costs based on the number
of hours of labor.
Durante the first week of January they sold 10 subscriptions and received four computers to be
repaired. The maintenance required 1 hour each. The information about orders is attached:
Order 01 Order 02 Order 03 Order 04
Materials $120 $200 $100 $50
Labor cost $60 $120 $60 $30
1. Determine the total cost of serving each client.
2. Calculate the profitability of each order and the profitability of the subscriptionsMidterm 1- What is the deal?" is a company in West Windsor, NJ operated by Pam Smith. The company
has two activities. Here are the facts:
A. Subscriptions:
The company provides maintenance of the equipment including back-ups and charges $50 weekly.
B. Technical repairs:
These repair services are priced $100 per hour plus materials. The materials are charged 20% over the
purchase price and the employees are paid $30 per hour. The overhead for 2024 was estimated to be
$20,000, and the estimated hours of labor 2,000. The company allocates the costs based on the number
of hours of labor.
Durante the first week of January they sold 10 subscriptions and received four computers to be
repaired. The maintenance required 1 hour each. The information about orders is attached:
Determine the total cost of serving each client.
Calculate the profitability of each order and the profitability of the subscriptions.
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