Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the following questions below correctly and in a clear format that is easy to follow and understand please. F. . 1' l'resident' s

image text in transcribedimage text in transcribedimage text in transcribed

Please answer the following questions below correctly and in a clear format that is easy to follow and understand please.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
F. . 1' l'resident' s compensation 86, see ec my wo 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 owner's da Lighter. home from school for the summer, has suggested investigating this question using ABC. After some discussion, a simple system consisting of tour activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: use ty Cost Pool . . . sincerity teem ;; ' .4: , , ,Ac't'ivitytstheftr sea Snow removal Square metres cleaned (965) 37,395 hundred square metres Travel to jobs Kilometres driven 17,156 kilometres Job support Number' Of jobs 359 jobs Other (costs of idle capacity and organization-sustaining ' costs) None NA W - r f 7' n 4 , , . , , ' fr -' L ism. The total cost of operating the company for the year is $412,500, which includes the following costs: \"ages :3 159 , eee Supplies 41,566 Snow removal equipment depreciation 21,598 5 Vehicle expenses 41,506 Office expenses 63,866 Check my President's compensation 86, 000 Total cost $412, 500 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activity Cost Pools Snow Travel to Removal Jobs Job Support Other Total Wages 80% 10% 0% 10% 100% Supplies 100% 0% 0% 0% 100% Snow removal equipment depreciation 859 0% 15% 100% Vehicle expenses 0% 65% 0% 35% 100% Office expenses 0% 0% 45% 55% 100% President's compensation 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.) search O K Home End Inser OFF F10 F4 F5 F7 F8 F9 F11 F12 F2 F3 F6 Required.) Snow Travel to Job Support Other Total Removal Jobs Wages $ 0 Supplies 0 Snow removal equipment depr. 0 Vehicle expenses 0 Office expenses 0 President's compensation O Total cost $ O $ O $ O $ o $ 0 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 metres arch OCheck 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 metres Travel to jobs per kilometre Job support per job 3. The company recently completed a 3,800-square-metre snow removal job at Hometown Hardware-a 78-kilometre round-trip journey from Kenosha's 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 Prev 1 of 2 Next > arch O4. The revenue from the Hometown Hardware job was $440.80 (3,800 square metres at $11.60 per hundred square metres). Prepare report showing the margin from this job. (Round your answers to 2 decimal places.) , ' Costs: - Travel Mobs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

15th edition

1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940

Students also viewed these Accounting questions

Question

Exude confidence, not arrogance.

Answered: 1 week ago