Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use per Activity Supervision, security, maintenance Liability insurance...

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Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use per Activity Supervision, security, maintenance Liability insurance Number of workdays Number of employees $450,000 1,500 100,000 800 Equipment costs Hours of operation 90,000 12,000 Indirect supplies and delivery Employee benefits Length in metres 250,000 Direct labour cost 250,000 $600,000 150,000 $1,040,000 Then, based on the information used to prepare the bids, Jordan determined that each of the 25 projects for the school board would require the following overhead activities. Activity Cost Pools Cost Drivers Supervision, security, maintenance Number of workdays Number of employees Liability insurance Equipment costs Indirect supplies and delivery Employee benefits Hours of operation Length in metres Direct labour cost Estimated Use per Job 30 4 240 3,000 $12,000 The materials costs for each project were expected to be $13,000. Instructions a. Calculate the estimated cost of this type of installation using both the traditional method and activity-based costing. b. Given the information calculated in part (a), make a recommendation to the management of Waterways as to what action they should take. c. Explain why you think Waterways' current bidding process would lead to increased market share. Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use per Activity Supervision, security, maintenance Liability insurance Number of workdays Number of employees $450,000 1,500 100,000 800 Equipment costs Hours of operation 90,000 12,000 Indirect supplies and delivery Employee benefits Length in metres 250,000 Direct labour cost 250,000 $600,000 150,000 $1,040,000 Then, based on the information used to prepare the bids, Jordan determined that each of the 25 projects for the school board would require the following overhead activities. Activity Cost Pools Cost Drivers Supervision, security, maintenance Number of workdays Number of employees Liability insurance Equipment costs Indirect supplies and delivery Employee benefits Hours of operation Length in metres Direct labour cost Estimated Use per Job 30 4 240 3,000 $12,000 The materials costs for each project were expected to be $13,000. Instructions a. Calculate the estimated cost of this type of installation using both the traditional method and activity-based costing. b. Given the information calculated in part (a), make a recommendation to the management of Waterways as to what action they should take. c. Explain why you think Waterways' current bidding process would lead to increased market share.