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II need help with C/D Exercise 10-8 a, c-d Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas:
II need help with C/D
Exercise 10-8 a, c-d Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y y y = = = $0 + $3x $0 + $12x $9,600 + $1x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Your answer is partially correct. Try again. Prepare a flexible budget for activity levels of 530, 590, and 660 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget Activity Level Direct Labor Hours variable costs | Direct Labor 1590 1770 1980 Grooming Supplies 6360 7080 7420 Overhead 590 660 Total Variable Costs 8480 440 10560 Fixed Costs Overhead 9600 9600 9600 Total Fixed Costs 9600 9600 9600 Total Costs 1 18080 19040 20160 x Your answer is incorrect. Try again. (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 Activity level 2 Activity level 3 (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 35% 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 Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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