HyStandard Services, Inc. provides residential painting services for three home building companies, Alpine, Blue Ridge, and Pineola, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by HyStandard for return touchups and refinishes after the homeowner occupies the home. HyStandard paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, the company generates about one-third of its total revenues and gross profits from each of the three builders. The HyStandard owner has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered:

Support activity	Driver	Cost per Driver Unit
Major refinishes	Hours on jobs	$70
Touchups	Number of visits	100
Communication	Number of calls	40

Builder	Major Refinishes	Touchups	Communication
Alpine	80	150	360
Blue Ridge	35	110	205
Pineola	42	115	190

Assuming that each of the three customers produces gross profits of $90,000, calculate the profitability from each builder after taking into account the support activity required for each builder.

Activity	Alpine	Blue Ridge	Pineola
Refinishes	Answer	Answer	Answer
Touchups	Answer	Answer	Answer
Communication	Answer	Answer	Answer
Total support costs	Answer	Answer	Answer
Gross profit	Answer	Answer	Answer
Customer profits	Answer	Answer	Answer

Answer rating: 100% (QA)

Answer Alpine Blue Ridge Pineola Refinishes 5600 2450 2940 Touchups ... View the full answer