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Help Problem 7-19 Evaluating the Profitability of Services (LO2, LO3, LO4] Kenosha Winter Services is a small, family-owned snow removal business. For its services, the company has always charged a flat fee per hundred square metres of snow removal. The current fee is $12.80 per hundred square metres. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on more remote properties that require considerable travel time. The owner's daughter, home from school for the summec has suggested investigating this question using ABC. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below Activity Cest Paol Snow renovel Travel to jobs Activity asore Square metres cleaned (004) Kilometres driven Activity for the Year 41,800 hundred square metres 24,400 kilometres 200 jiks Job Support Number of jobs Other (costs of idle capacity and organization-sustaining costs) Mone MA The total cost of operating the company for the year is $510,000, which includes the following costs: Nages Supplies $199,000 48,000 20,000 Snow removal equipment depreciation 48,000 Vehicle expenses 16,000 office expenses 112,000 President's compensation $510,000 Total cost Forumation is distributed across the activities as follows: Save & Check my work Resource consumption is distributed across the activities as follows: Distribution of Ressurce Consumption across Activity fast Fools Travel to Show Hemoval Jobs, 30% Job Support Other Wages Supplies Jutal OYS 105 1005 70% 100% 90% O in s 1005 Snow removal equipment depreciation OK D 201 100% Vehicle expenses OK 70% in 30% 100 office expenses 0% OK 40% cen 1905 President's compensation 0% 45% 558 tous Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so ong Required: 1. Prepare the first stage allocation of costs to the activity cost pools. (Do not leave any empty spaces: input a 0 wherever it is required.) Snow Removal Travel to Jobs Job Support Other Total Wages Supplies Snow removal equipment depr Vehicle expenses Office expenses President's compensation 0 $ Total cost $ 05 05 A S 0 $ ol 0 0 0 0 0 0 1 10 ponts mes ences 2. Compute the activity rates for the activity cost pools (Round your answers to 2 decimal places) Activity Cost Pool Snow removal Travel to jobs Activity Rale per hundred squ per konte per job Job support 3. The company recently completed a 5300-square metre snow removal job at Hometown Hardware-a 91-ktometre round-trip journey from Kenosha's offices Compute the cost of this job using the ABC system (Round your answers to 2 decimal places) Activity Cost Pool ABC Cost Snow removal Travel to jobs Job support Total $ 0.00 4. The revenue from the Hometown Hardware job was $652.80 (5,100 square metres at $12.80 per hundred square metres). Prepare a rennet cheusing the main from the inh Band NU ARE 3 darimal maar Help Seve&a M Check my work 1 Mc Tra Job support Total S 0.00 oc 4. The revenue from the Hometown Hardware job was $652.80 5100 square metres at $12.80 per hundred square metres Prepare a report showing the margin from this job. (Round your answers to 2 decimal places. Mix Sales Costs Snow removal Travel to jobs Job support Product margin 0:00 0:00 15 5. This part of the question is not part of your Connect assignment. 6. This part of the question is not part of your Connect assignment. Prev Next > 10 pos 1 of 5 Chak my