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Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following...

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Accounting

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Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Direct labor (variable) y=$0+$4xy=$0+$14xy=$9,100+$1x Overhead (mixed) Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. (a) Prepare a flexible budget for activity levels of 510,600 , and 670 direct labor hours, (List variabie costs before foxed costs.) Prepare a flexible budget for activity levels of 510,600 , and 670 direct labor hours. (List voriable costs before fixed costs). (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, es. 10.25.) Activity level 15 Activity level2 $ Activity level 3$5 (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Fach 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 ploces, e.3. 10.25.) Charge per client 5

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