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High River Property Management (HPM) offers a variety of services to homeowners. The services include: Outside Care, which includes grass-cutting, snow shovelling, tending of gardens,
High River Property Management (HPM) offers a variety of services to homeowners. The services include: Outside Care, which includes grass-cutting, snow shovelling, tending of gardens, and so forth; and Inside Care, which includes house cleaning services. These services are ongoing and are based on yearly contracts. In addition, HPM offers short term services for people who are travelling or will otherwise be away from their homes. This service, Absent Care, includes maintaining a property inside and outside while a client is away to ensure the house is kept in good order and appears "lived in." At HPM, every contract has a property manager. In terms of completing the work, Outside Care appointments have a grounds keeper and Inside Care appointments have a major domo. Absent Care appointments have both a grounds keeper and a major domo. In addition, the office staff maintains all records and completes billing activity. Another important activity that HPM must perform is general equipment maintenance. As a result of reviewing the operations, HPM has established the following cost drivers for these activities: (Click the icon to view the cost drivers.) (Click the icon to view the additional information.) Requirements Requirement 1. Calculate the activity rate for all identified activities of the organization. (Round your final answers to the nearest cent.) Activity total cost Cost driver total Activity cost rate Activity Property Manager Grounds Keeper = Major Domo 1 = Clerical time Equipment Maintenance Additional information Cost drivers For the previous year, the total costs for property managers, grounds keepers, and major domos and the amount of time (hours) spent on each of Outside Care, Inside Care, and Absent Care are outlined in the following table. Activity Property Manager Grounds Keeper Major Domo Clerical Time Equipment Maintenance Cost Driver Time (hours) Time (hours) Time (hours) Number of visits Number of visits Print Done Time (hours) Spent on each Service Total Cost Outside Care Inside Care Absent Care Property Manager ... 2750 2550 800 79300 Grounds Keeper 3950 0 460 37926 Major Domo 0 5300 1100 61440 These costs represent 8,600 appointments over the year, of which 3,100 were for Outside Care, 2,100 were for Inside Care, and 3,400 were for Absent Care. Clerical costs for the period were $89,440, and the Equipment Maintenance costs were $51,600. i Requirements Print Done 1. Calculate the activity rate for all identified activities of the organization. 2. Calculate the total cost of providing each service. 3. Calculate the cost of each client visit for each type of service. Print Done
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