Haddleburg Property Management (HPM) offers a variety of services to homeowners. The services include: Outside Care, which includes grass-cutting, snow shovelling, tending of gardens, and so forth; and Inside Care, which includes house cleaning services. These services are ongoing and are based on yearly contracts. In addition, HPM offers short-term services for people who are travelling or will otherwise be away from their homes. This service, Absent Care, includes maintaining a property inside and outside while a client is away to ensure the house is kept in good order and appears €œlived in.€

At HPM every contract has a property manager. In terms of completing the work, Outside Care appointments have a grounds keeper and Inside Care appointments have a major domo. Absent Care appointments have both a grounds keeper and a major domo. In addition, the office staff maintains all records and completes billing activity. Another important activity that HPM must perform is general equipment maintenance. As a result of reviewing the operations, HPM has established the following cost drivers for these activities:

Activity .................................................... Cost Driver
Property Manager ......................... Time (minutes)
Grounds Keeper ............................ Time (minutes)
Major Domo ................................... Time (minutes)
Clerical Time ................................ Number of visits
Equipment Maintenance ............ Number of visits

For the previous year, the total costs for property managers, grounds keepers, and major domos and the amount of time (minutes) spent on each of Outside Care, Inside Care, and Absent Care are outlined in the following table.

Requirements:
1. Calculate the activity rate for all identified activities of the organization
2. Calculate the total cost of providing each service.
3. Calculate the cost of each client visit for each type of service.

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Time (minutes) Spent on Each Service Outside Care Inside Care Absent Care 1000 500 1000 Total Cost 2500 Property Manager. Grounds Keeper . 2500 75000 35000 50000 4000 5000 Major Domo..