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 $11.65 per hundred square metres. However, there is some question about whether the company is actually making any money on jobs for some customersparticularly those located on more remote properties that require considerable travel time. The owners 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 (00s)	38,725 hundred square metres
Travel to jobs	Kilometres driven	17,650 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 $427,500, which includes the following costs:

Wages	$	165,000
Supplies		42,500
Snow removal equipment depreciation		22,500
Vehicle expenses		42,500
Office expenses		65,000
Presidents compensation		90,000
Total cost	$	427,500

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	%
Presidents 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.

a)	Prepare the first-stage allocation of costs to the activity cost pools.

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

2.	The company recently completed a 4,000-square-metre snow removal job at Hometown Hardwarea 80-kilometre round-trip journey from Kenoshas offices. Compute the cost of this job using the ABC system. (Round your answers to 2 decimal places.)

3.	The revenue from the Hometown Hardware job was $466.00 (4,000 square metres at $11.65 per hundred square metres). Prepare a report showing the margin from this job. (Round your answers to 2 decimal places.)