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 Pool Activity Measure Activity for the Year Snow removal Square metres cleaned (00s) 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 $ 153,000 Supplies 40,500 Snow removal equipment depreciation 20,500 Vehicle expenses 40,500 Office expenses 61,000 Presidents compensation 82,000 Total cost $ 397,500 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. 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 Removal	Travel to Jobs	Job Support	Other	Total
Wages
Supplies
Snow removal equipment depreciation
Vehicle expenses
Office expenses
Presidents compensation
Total

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 meters
Travel to jobs		per km
Job support		per job

3. The company recently completed a 3,600-square-metre snow removal job at Hometown Hardwarea 76-kilometre round-trip journey from Kenoshas 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 $417.60 (3,600 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.)

Sales
Costs
Snow removal	.
Travel to jobs
Job support		..
Product margin