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Jardon painting paints the interiors and exteriors of homes and commercial buildings. The company uses and activity-based costing system for its overhead costs. The company

Jardon painting paints the interiors and exteriors of homes and commercial buildings. The company uses and activity-based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system.

Activity cost pool

Activity measure

Annual activity

Painting overhead

Square meters

30,000 square meters

Job support

Jobs

1,100 jobs

Other

None

Not applicable

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.

The company has already finished the first stage of the allocating process in which costs were allocated to the activity cost centers. The results are listed below:

Painting

Job support

Other

total

Painting overhead

$110,000

$50,000

$40,000

$200,000

Office expense

40,000

60,000

35,000

135,000

Total

150,000

$110,000

$75,000

$335,000

Required:

  1. Compute the activity rates (i.e., cost per unit of activity) for the painting and job support activity cost pools by filling in the table below. Round off all calculations to the nearest whole cent.

    Job

    Painting

    Support

    Total

  2. Prepare a product margin report for ONE job that involves painting 400 square meters and has direct materials cost of $1,000 and direct labor cost of $1,190. The total sales revenue from this job is $3,600.

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