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Exercise 3B: Calculate rates of activity (Activity rates ) (value: 10 points) Pool Services, Inc. is a service company dedicated to the maintenance and cleaning of home pools. The owner understands that the costs depend on the amount of gallons of water in the pool, the distance to reach each customer and the total number of customers. It also depends on whether they are continuous use pools that require more maintenance or low-use pools that require more maintenance and the cleaning of the filters is considered separate as it requires one hour of employee labor and specific materials. Required: Use the annual costs and activities that are summarized below and calculate the activity rate for each of the cost activities. Total cost Activity rate $ 37.800 Cost activities Expected activity for each unit of measure of activity level (inductors) Maintenance of pools of 5,400,000 gallons of water from little use widely used pools Maintenance of pools of 1.800.000 gallons of water from much use widely used pools Filter cleaning 300 filter maintenance Trips to each pool 20,000 miles Billing and customer service | 40 customers $ 19,800 S 6,600 $ 5,600 $ 11,600 Exercise 3C: Indirect cost allocation-second stage distribution (Value: 12 points) Gester Corp. is a company that manufactures various products. The company has defined the following activities and activity rates in its activity-based cost system. Direct labor $ 8.75 per hour of direct labor Machine processing $ 3.75 per machine hour Machine preparation $ 50 each preparation Production order $ 200 for each order Shipping and handling $ 150 per shipment Product support $ 1,000 per product Required: Rectangular Snip Determine the total indirect cost that would be assigned to each of the following products (X, Y, Z) according to the level of expected activity that is established for each. 700 1.900 Z 40 30 Direct labor Machine processing Machine preparation Production order Shipping and handling Product support 300 1,300 two one 4 two two two one one one

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