Managerial Accounting - BADM2010 Group Assignment 2 Chapter 7 Fall 2018 Lynda's Lawns Ltd. is a lawn care company. It currently allocates its indirect costs using direct labour hours as the only cost driver. The total indirect costs for 2018 are estimate at $53,760. Total direct labour hours are estimate at 960 hours The firm is thinking of using an activity-based costing system based on the following Activity Cost Pool Office Costs Depreciation on fertilizer equipment Depreciation on lawnmowers Total Estimate Costs S35,000 6.410 12.350 Total Estimated Activity 700 invoices issued 350 fertilizer orders 900 lawn cutting hours Cost and activity data related to two clients Client 100 24 Client 101 30 Direct labour hours Number of invoices Number of fertilizer orders Number of lawn cutting hours 20 28 Required A) Calculate the amount of overhead that would be allocated to client 100 and client 101 using total direct hours as the only cost driver b) Calculate the amount of overhead that would be allocated to client 100 and client 101 using the activity-based costing svstem