Johnson Gardening Company provides lawn and garden services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system.

Activity Cost Pool Total Cost Total Activity

Mowing/trimming $150,750 12,250 hours

Job support 25,725 1,800 jobs

Client support 7,250 300 clients

Other 25,000 Not applicable

Total $208,725

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

One particular client, the Guzman family, requested 20 jobs during the year that required a total of 150 hours of gardening. For these services, the client was charged $5,500. Required: a. Compute the activity rates for the activity cost pools. Round off all calculations for the nearest whole cent. b. Using the activity-based costing system, compute the customer margin for the Guzman family. Round off all calculations to the nearest whole cent. c. Assume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of mowing/trimming hours. Compute the margin for the Guzman family. Round off all calculations to 2 decimal points (for example $11.29)