Rescue Plant Co. completed a special landscaping job for San-Claire Designs. Rescue uses ABC and has the following predetermined overhead allocation rates:

Predetermined Overhead

Activity Allocation Base Allocation Rate

Designing Number of designs $275 per design

Planting Number of plants $15 per plant

The San-Claire Designs project required $1,200 in landscape materials, $700 in direct labor, one design, and 35 plants.

Requirements (show your calculations)

What is the total cost of the work done for San-Claire Designs?

If San-Claire Designs paid $3,900 for the entire job, what is the operating income or loss?

If Rescue Plant Co. desires an operating income of 50% of cost, how much should the company charge for the San-Claire Designs project?