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This is the full question. Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) y
This is the full question.
Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) y = $0+ $4x Direct labor (variable) y = $0+ $12 Overhead (mixed) y = $10,800 + $2x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Prepare a flexible budget for activity levels of 510.580, and 680 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget s $ (c) Calculate the total cost per direct labor hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, eg. 10.25.) Activity level 1 $ Activity level 2 $ Activity level 3 s (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 40% of the costs incurred. Determine what he should charge each pet owner for grooming (Round answer to 2 decimal places, e.g. 10.25.) Charge per clients
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