This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 17-34 of Chapter 17. Recall that Lawlor completed a special landscaping job for Sheldon’s Ideal Designs. If Lawlor had used activity-based costing, Lawlor’s data about the job, including ABC information, would be as follows:
Sheldon Job details:
Direct materials......$700
Direct labor.........$1,200

ABC Costing Rates:
$275 per setup
$15 per plant
Requirements
1. Lawlor uses one setup for the Sheldon job and installs 35 plants. What is the total cost of the Sheldon job?
2. If Sheldon paid $3,900 for the job, what is the profit or loss under ABC?