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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 $11,60 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 (0) 36,065 hundred square metres Travel to Jobs Kilometres driven 16,650 kilometres Job support Number of jobs 500 jobs Other (costs of idle capacity and organization sustaining costs) None NA The total cost of operating the company for the year is $397.500, which includes the following costs Wages Supplies Snow resoval equipment depreciation Vehicle expenses office expenses President's compensation Total cost $15,000 49.500 20,500 40,500 61.000 $2,000 $397,500 activities as follows: Wages Supplies Snow removal equipment depreciation Vehicle expenses office expenses President's compensation Snow Removal BOX 100% 85% ox ex Ox Distribution of Resource Consumption across Activity Cost Pools Travel to Jobs Job Support Other 10% ex 10% OX OK ex ox OK 15% 65% ok 35% ON 45% 55% OR 35% 65% Total 100% 100 100% 100 100% 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 ao wherever it is required.) Snow Removal Travel to Jobs Job Support Other Total $ Wages Supplies Snow removal equipment depr. Vehicle expenses Office expenses President's compensation Total cost 0 0 0 0 0 0 0 $ 0 S 0 $ 0 $ $

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