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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 of

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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 of snow removal. The current fee is $12.70 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 (@es) 40, 600 hundred square metres Travel to jobs Kilometres driven 28, 520 kilometres Job support Number of jobs 160 jobs Other (costs of idle capacity and organization - sustaining costs) None NA The total cost of operating the company for the year Is $495,000, which includes the following costs: Wages $192, 090 Supplies 47, 090 Snow removal equipment depreciation 27, 0ge Vehicle expenses 47, 090 Office expenses 74, 090 President's compensation 108, 090 Total cost $495, 090 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activity Cost Pools Snow Travel to Removal Jobs Job Support Other Total Wages 79% 10% 190% Supplies 190% 9% 190% Snow removal equipment depreciation 80% 9% 0% 20% 190% Vehicle expenses 70% 30% 190% Office expenses 9% 19% 60% 190% President's compensation 45% 55% Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving issues, and so on. Required.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.) Snow Travel to Job Support Other Total Removal Jobs Wages Supplies Snow removal equipment depr. Vehicle expenses Office expenses President's compensation Total cost 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Snow removal per hundred square metres Travel to jobs per kilometre Job support per job 3. The company recently completed a 4,900-square-metre snow removal job at Hometown Hardware-a 89-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.)3. The company recently completed a 4,900-square-metre snow removal Job at Hometown Hardware-a 89-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 4. The revenue from the Hometown Hardware Job was $622.30 (4,900 square metres at $12.70 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 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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