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please solve will like Your Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs The company
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Your Company 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. Activity Rates Activity Cost Pool Total Cost Cleaning................ $185,752 $8.56 per hour Job support........... 171,532 $28.12 per job Client support........ 15,124 $19.90 per client Other..... 240,000 Total......... $612,408 The "Other' activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One particular client requested 15 jobs during the year that required a total of 60 hours of housecleaning. For this service, the client was charged $1,170. Using a traditional costing system (Chapter 2) in which ALL costs are allocated to customers on the basis of cleaning hours, compute the margin for this client. Total cleaning hours = 21,700Step by Step Solution
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