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this is one question Kenosha Winter Services is a small, family-owned snow-removal business. For its services, the company has always charged a fl ber hundred
this is one question
Kenosha Winter Services is a small, family-owned snow-removal business. For its services, the company has always charged a fl ber hundred square metres of snow removal. The current fee is $12.70 per hundred square metres. However, there is some ques about whether the company is actually making any money on jobs for some customers-particularly those located on more remo properties that require considerable travel time. The owner's daughter, home from school for the summer, has suggested investic this question using ABC. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. Th activity cost pools and their activity measures appear below: The total cost of operating the company for the year is $495,000, which includes the following costs: The total cost of operating the company for the year is $495,000, which includes the following costs: Resource consumption is distributed across the activities as follows: Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 3. The company recently completed a 4,900-square-metre snow removal job at Hometown Hardware-a 89 -kilometre round-trip journey from Kenosha's offices. Compute the cost of this job using the ABC system. (Round your answers to 2 decimal places.) 4. The revenue from the Hometown Hardware job was $622.30(4,900 square metres at $12.70 per hundred square metres). Prepare a report showing the margin from this job. (Round your answers to 2 decimal places.)Step by Step Solution
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