dane housecleaning provides services to its clients. the compnay uses an activit
ID: 2568379 • Letter: D
Question
dane housecleaning provides services to its clients. the compnay uses an activity- based costing system for its overhead costs. the company has provided the following data from its activity- based costing system
Activity cost pool total cost total activity
cleaning 263,784 34800 hours
job support 145,180 7000 jobs
clietnt support 4774 220 clients
other 170000 not applicable
total 583,738
the hoium family requested 45 jobs during the year that required a total of 90 hours of housecleaning. for the service, the client was charged $2000.
Required
A. Compute the activity rates for the activity cost pools. round off to nearest whole cent.
b. using activity based costing system. compute the customer margin for the hoium family. round off all calculation to the nearest whole cent.
C. assume compan used traditional costing system instead in which all costs allocated to customers on the basis of cleaning hours. compute the margin for the hoium family
Explanation / Answer
A. Activity rates for the activity cost pools is:
B. Customer margin for the hoium family is
C. margin for the hoium family using Traditional costing is:
Estimated Activity Cost Pools Activity Measures Overhead Cost Expected Activity Pool rate Cleaning Hours $ 263,784 34,800 8 Job support Jobs 145,180 7,000 21 Client support Clients 4,774 220 22 $ 413,738Related Questions
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