Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Audits And Loss Control Programs Manual Of Water Supply Practices M36

Authors: AWWA Staff

3rd Edition

1583216316, 978-1583216316

More Books

Students also viewed these Accounting questions