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QUESTION 1 Sam's Snowplowing uses an activity based costing (ABC) system to estimate costs in order to provide pricing for its customers. Sam has gathered
QUESTION 1 Sam's Snowplowing uses an activity based costing (ABC) system to estimate costs in order to provide pricing for its customers. Sam has gathered the following information about activity cost pools, activity measures, estimated total costs and estimated activity for the year Activity cost pool Estimated total cost Estimated activity Clearing driveway $25,500 Clearing walkway 9,375 Cleaning steps 435 Travel to job 855 Customer billing & service 4,500 30,000 square feet of driveway 3,750 square feet of walkway 300 number of steps 1,500 miles 18 number of customers Calculate the activity rate for each activity cost pool. Calculate al answers to 2 decimal places $ $ Clearing driveway Clearing walkway Cleaning steps Travel to job Customer billing & service per square foot of driveway per square foot of walkway per step per mile per customer we QUESTION 2 Foam Products, Inc, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 5.55 per direct labor hour Batch processing Number of batches $ 107.00 per batch Order processing Number of orders $ 275.00 per order Customer service Number of customers $ 2,463.00 per customer The company just completed a single order from Interstate Trucking for 1,000 custom seat cushions. The order was produced in 2 batches Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 per unit, and the direct labor cost was $6.00 per unit. This was Interstate Trucking's only order during the year Calculate the customer margin on sales to Interstate Trucking for the year (Round your answers to 2 decimal places.)
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