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Problem 4 25pts. Kutt Lawn cutting is a small, family-owned business operating out of Overland Park, Kansas. For its services, the company has always charged

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Problem 4 25pts. Kutt Lawn cutting is a small, family-owned business operating out of Overland Park, Kansas. For its services, the company has always charged a flat fee per hundred square feet of lawn cut. The current fee is $23.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The activity cost pools and their activity measures appear below: Activity Cost Pool Grass cutting Travel to jobs Job support Other (costs of idle capacity and Activity for the Year 14,000 hundred square feet Activity Measure Square feet cut (00s) Miles driven Number of jobs 393,500 miles 1,700 jobs organization-sustaining costs) None Not applicable The total cost of operating the company for the year is $336,000, which includes the following costs 149,000 Wages Cutting supplies Cutting equipment 26,000 depreciation 6,000 29,000 55,000 71,000 336,000 Vehicle expenses Office expenses President's compensation Total cost

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