Sheridan Groomers is in the dog-grooming business. Its operating costs are described by these formulas: = Grooming supplies (variable) Direct labour (variable) Overhead (mixed) = y $0+ $4x $0+ $14x $8,844 + $1x y = Steven, the owner, has determined that direct labour is the cost driver for all three categories of costs. (a) Your answer is correct. Prepare a flexible budget for activity levels of 550, 600, and 670 direct labour hours. (List variable costs before fixed costs.) SHERIDAN GROOMERS Flexible Budget Activity Level Direct Labour Hours 550 600 670 Variable Costs Grooming Supplies 2200 $ 2400 $ 2680 Direct Labour 7700 8400 9380 Overhead 550 600 670 Total Variable Costs 10450 11400 12730 Fixed Costs Overhead 8844 8844 8844 Total Costs $ 19294 $ 20244 $ 21574 (c) Your answer is correct. Calculate the total cost per direct labour hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, e.g. 10.25.) Activity level 1 35.08 Activity level 2 $ 33.74 Activity level 3 32.20 (d) X Your answer is incorrect. The groomers at Sheridan normally work a total of 625 direct labour hours during each month. Each grooming job normally takes a groomer 1.25 hours. Steven wants to earn a profit equal to 45% of the costs incurred. Determine what she should charge each pet owner for grooming. (Round answer to 2 decimal places, e.g. 10.25.) Charge per client 54.65