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I will be sure to like the solution F4.17 (L.0 4), AP [Service Manzeck Company operates a snow-removal service. The company owns five trucks, each

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F4.17 (L.0 4), AP [Service Manzeck Company operates a snow-removal service. The company owns five trucks, each of which has a snow plow in the front to plow driveways and a sno thrower in the back to clear sidewalks. Because plowing snow is very tough on trocks, the company incurs significant maintenance costa. Truek depreciation and maintenance represents a significant portion of the company's overbead. The compuny removes snow at residential locations, in which case the drivers spend the bulk of their time walking behind the snow-throwe machine to clear sidewallos. On commercial jobs, the drivers spend most of their time plowing. Manzeck assigns overhead based on labor hours. Total estimated overhead eosts for the yea are \$42,000. Total estimated labor hours are 1,500 hours. The average residential property requires 0.5 hours of labor, while the average commercial property requires 2.5 hours of labor. The following additional information is available. Instructions a. Determine the predetermined overhead rate under traditional costing b. Determine the amount of overhead assigned to the average residential job using traditional costing based on labor bours. c. Determine the activity-based overhesd rates for each cost pool. d. Determine the amount of overhead assigned to the avrage residential job using activity-based costing Asume that the average residential job has ao square yards of plowing and 60 linear feet of snow throwing. e. Discuss your findings from parts (b) and (d). Problems

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