Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marigold is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y =
Marigold is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y = $0+ $5x Y = $0+$14x y = $9,100 + $1x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Activity Level Direct Labor Hours Variable Costs Grooming Supplies Direct Labor Overhead +A MARIGOLD Flexible Budget 530 580 2650 i 2900 3300 7420 i 8120 9240 530 580 660. Total Variable Costs 10600 11600 13200 Fixed Costs Overhead 9100 i 9100 i 9100 Total Fixed Costs 9100 i 9100 Total Costs 9100 19700 i 20700 22300 (c) & (d) (c) Calculate the total cost per direct labor hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, eg. 10.25.) Activity level 1 $ Activity level 2 $ Activity level 3 $ (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 40% of the costs incurred. Determine what he should charge each pet owner for grooming. (Round answer to 2 decimal places, eg. 10.25.) Charge per client $ Qu Acc Qu Acce Qui ACCO Que Accom Que Accou
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started