80.2K

Verified Solution

Link Copied!

Prepare the first-stage allocation of costs to the activity cost pools.

CoursHeroTranscribedText: Kenosha Winter Services is a small. formily owned snow removal business. For its services, the company has always charged a flat fee per hundred square metres of snow removal. The current fee is $:1,65 per hundred square metres However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on more remote properties that require considerable travel time. The owner's daughter home from school for the summer, has suggested investigating this question using ABC. After some disqustion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost poo's and their activity measures appent below. Activity Cost Pool Activity Measure Activity for the Year Square metres cleaned [Pee) 18, 725 hurdred square setres Fraval to jobs Allowtres driven 17,650 kilometres Jo support Member of jobs 250 109% Other (costs of Idle capacity and organization-sustaining costs) The total cost of operating the company for the year is $427,500. which includes the following costs Wages $15, Pre Supplies 17,50 Snow recoval equipment depreciation Vehicle expenses 42,56 office experts President's compensation Fatal cost 1427,508 Resource consumption is distributed across the activities as follows Distribution of Resource Consumption across Activity Cost quals Travel to Actoval Job Support ehm- Total 185 lan Supplies LENTE Snow removal equipment depreciation Vehicle expenses 658 35x office expenses EX 55% President's compensation 35% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues. and so on. Requirea 1. Prepare the first-stage allocation of costs to the activity cost pooks. [Do not leave any empty spaces; Input a 0 wherever It Is required.} Snow Travel 's Joh Support Cut er Total Snow removal equipment dep We ide caterour Fresdent's compensation

Answer & Explanation Solved by verified expert

See Answer