Kenosha Winter Services is a small, family$-$owned snow$-$removal business. For its services, the company has always charged a flat fee per hundred square metres of snow removal. The current fee is $$11\mathrm{.}55$ per hundred square metres. However, there is some question about whether the company is actually making any money on jobs for some customers$$particularly those located on more remote properties that require considerable travel time. The owner$$s daughter, home from school for the summer, has suggested investigating this question using ABC. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:

Activity Cost Pool Activity Measure Activity for the Year

Snow removal Square metres cleaned $(00$s$)40,055$ hundred square metres

Travel to jobs Kilometres driven $20,625$ kilometres

Job support Number of jobs $250$ jobs

Other $($costs of idle capacity and organization$-$sustaining costs$)$ None NA

The total cost of operating the company for the year is $$442,500,$ which includes the following costs:

Wages $ $171,000$

Supplies $43,500$

Snow removal equipment depreciation $23,500$

Vehicle expenses $43,500$

Office expenses $67,000$

President$$s compensation $94,000$

Total cost $ $442,500$

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption

across Activity Cost Pools

Snow Removal Travel to Jobs Job Support Other Total

Wages $80\%10\%0\%10\%100\%$

Supplies $100\%0\%0\%0\%100\%$

Snow removal equipment depreciation $85\%0\%0\%15\%100\%$

Vehicle expenses $0\%65\%0\%35\%100\%$

Office expenses $0\%0\%45\%55\%100\%$

President$$s compensation $0\%0\%35\%65\%100\%$

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on$.$

Required:

$1.$ Prepare the first$-$stage allocation of costs to the activity cost pools. $($Do not leave any empty spaces; input a $0$ wherever it is required.$)$

$2.$ Compute the activity rates for the activity cost pools. $($Round your answers to $2$ decimal places.$)$

$3.$ The company recently completed a $4,200-$square$-$metre snow removal job at Hometown Hardware$$a $82-$kilometre round$-$trip journey from Kenosha$$s offices. Compute the cost of this job using the ABC system. $($Round your answers to $2$ decimal places.$)$

$4.$ The revenue from the Hometown Hardware job was $$485\mathrm{.}10(4,200$ square metres at $$11\mathrm{.}55$ per hundred square metres$).$ Prepare a report showing the margin from this job. $($Round your answers to $2$ decimal places.$)$

$5.$ This part of the question is not part of your Connect assignment.

$6.$ This part of the question is not part of your Connect assignment.

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