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 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 PoolActivity MeasureActivity for the YearSnow removalSquare metres cleaned (00s)41,385hundred square metresTravel to jobsKilometres driven18,650kilometresJob supportNumber of jobs250jobsOther (costs of idle capacity and organization-sustaining costs)NoneNA

The total cost of operating the company for the year is $457,500, which includes the following costs:

Wages$177,000Supplies44,500Snow removal equipment depreciation24,500Vehicle expenses44,500Office expenses69,000Presidents compensation98,000Total cost$457,500

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption across Activity Cost PoolsSnow RemovalTravel to JobsJob SupportOtherTotalWages80%10%0%10%100%Supplies100%0%0%0%100%Snow removal equipment depreciation85%0%0%15%100%Vehicle expenses0%65%0%35%100%Office expenses0%0%45%55%100%Presidents compensation0%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 4,400-square-metre snow removal job at Hometown Hardwarea 84-kilometre round-trip journey from Kenoshas 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 $510.40 (4,400 square metres at $11.60 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.