Peramu Housecleaning provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Table 1 Activity Cost Pool Cleaning Job support...... Client support Other...... Total Cost RM 442,068 52.801 9,170 110,000 Total Activity 78,800 hours 1,900 jobs 350 clients Not applicable Total RM 614,039 The "Oiher" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. One particular client, the Leman family, requested 46 jobs during the year that required a total of 92 hours of housecleaning, For this service, the client was charged RM2,230 predetermined Required: (a) Compute the activity rates (i.c., cost per unit of activity) for the activity cost pools. Round off all calculations to the nearest whole sen. [3 Marks |C01, POI, C4 (b) Using the activity-based costing system, compute the customer margin for the Lemann family. Round off all calculations to the nearest whole sen. 16 Marks [COI, POI, C4) CONFIDENTIAL 19201/KPA1133/KPC1143 (c) Assume the company decides instead to use a traditional costing system in which ali costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Leman family. Round off ali calculations to the nearest whole sen. [6 Marks] COI, POI, C4 (d) Discuss the difference in the customer margins in (b) and (c) on how it can affect Peramu's decision on its pricing and preferred customer. 15 Marks [C0I, P01, C4]