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Question T [16 marks} ABC Cleaning Ltd. provides cleaning services to commercial clients. ABC budgeted that there will be a total of Littl jobs obtained
Question T [16 marks} ABC Cleaning Ltd. provides cleaning services to commercial clients. ABC budgeted that there will be a total of Littl jobs obtained for the year 222. Each job averages 6G0 square feet of surface to be cleaned and requires 12 direct labour hours. The company pays cleaners $15 per hour and charges customers $. per square foot of surface cleaned. The company allocates overhead based on direct labour hours. The budgeted overhead costs for the year 2022 include variable costs of $6.5 per direct labour hour1 and xed costs of indirect labor at $25,{}. depreciation at $1 l and other costs at $24,l. Instructions: a) Calculate the budgeted cost of an average EDD square foot cleaning job. (3 marks) b) If the company now anticipates that the total number of jobs will fall to 900 for the year, prepare the budgeted operating income statement for the year 222. (8 marks}
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