KasiBersihRumah provides housecleaning 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 (RM) Total Activity

Cleaning 442,068 78,800 hours

Job support 52,801 1,900 jobs

Client support 9,170 350 clients

Other 110,601 Not applicable

Total 614,640

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

One particular client, the Maria family, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230.

Required:

a) Compute the activity rate for the activity cost pools. (6 marks)

b) Using the activity-based costing system, compute customer margin for the of the Maria family. (6 marks)

c) Compute the predetermined overhead rate if the company chooses cleaning hours as the allocation base. (2 marks)

d) Assume the company decides to use traditional system in which the allocation base of ALL costs is based on cleaning hours. Compute the margin for the Maria family. (4 marks)