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managerial accounting The Coletti Cleaning Brigade Company provides housecleaning services to its elients. The company uses an activity-based costing system for its overhead costs. The
managerial accounting
The Coletti Cleaning Brigade Company provides housecleaning services to its elients. The company uses an activity-based costing system for its overhead costs. The company provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Total Activity Cleaning S302.993 43,100 hours Job support. Client support... Other Total.... 535441 79,100 5,000 jobs 3.348 180 clients 150,000 Not applicable The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. One particular client, the Tubman family, requested 26 jobs during the year that required a total of 104 hours of housecleaning. For this service, the client was charged $1,420. a. Using the activity-based costing system, compute the customer margin for the Tubman family. b. Ass the Tubman family. Computations for costs: ume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaning hours. Compute the margin forStep by Step Solution
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