Question
Sams Snowplowing uses an activity based costing (ABC) system to estimate costs in order to provide pricing for its customers. Sam has gathered the following
Sams 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 30,000 square feet of driveway Clearing walkway 9,375 3,750 square feet of walkway Cleaning steps 435 300 number of steps Travel to job 855 1,500 miles Customer billing & service 4,500 18 number of customers Calculate the activity rate for each activity cost pool. Calculate all answers to 2 decimal places.
Clearing driveway $ _______________ per square foot of driveway Clearing walkway $______________ per square foot of walkway Cleaning steps $ ______________ per step Travel to job $_____________ per mile Customer billing & service $___________ per customer
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