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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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed 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 $10.30 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 cast pools and their activity measures appear below Snow removal Travel to jobs Job support Other (costs of idle capacity and organization sustaining costs) Activity Heatin Square metres cleaned (eos) Kilometres driven Number of jobs None Activity for the Your 47,250 hundred spare metres 27,760 kilometres 250 jobs NA The total cost of operating the company for the year is $480,000, which includes the following costs Wages Supplies Snow removal equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $186,000 46,000 26,000 46,000 72,000 104,000 $480,000 Resource consumption is distributed across the activities as follows: Check Resource consumption is distributed across the activities as follows Mag Supplies Snow removal equipment depreciation) Vehicle expenses office expenses President's compensation ats Mtivity Cost Pos 3004 Travel to Job Suppines Other Total 70% 20% 10% 100% 100% 0% 100% BO% on 20% 100% 70% 30% 100% 0% 60% 100% 45% 558 100% 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 O wherever it is required.) Snow Removal Travel to Jobs Job Supporte Other Total $ 0 Wages 0 Supplies Snow removal equipment depr Vehicle expenses 4 0 0 Office expenses 0 President's compensation $ 0 $ 0 $ 0 $ 0 $ 0 Total cost Check m 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Aullally Cost Pop Snow romoval Travel to jobs Job support Activity Rate per hundred square metres. per kilometre per job 3. The company recently completed a 4,700-square-metre snow removal job at Hometown Hardware a 87-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.) Activity Cost Pool ABC Cost Snow removal Travel to jobs Job support Total $ 0.00 4. The revenue from the Hometown Hardware job was $484.10 (4,700 square metres at $10.30 per hundred square metres) Prepare a report showing the margin from this job. (Round your answers to 2 decimal places.) Sales Costs Snow removal Travel to jobs Job Support Product margin 0.00 000 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 D

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