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Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable)y=$0 + $3x Direct labor (variable)y=$0 +

Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas:

Grooming supplies (variable)y=$0 + $3x

Direct labor (variable)y=$0 + $12x

Overhead (mixed)y=$10,600+ $2x

Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs.

1st question :I need a flexible budget for activity levels of550,590, and680direct labor hours.

2nd question:I need the total cost per unit at each of the activity levels specified in part a for activity level 1, activity level 2, and activity level 3.

3rd question:Lastly the groomers at rensing normally work a total of 650 direct labors during each month. Each grooming lab normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 40 percent of the costs incurred. What is the direct charge per client that he should charge each pet owner for grooming?

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