Using the activity-based costing system, compute the customer margin for the Jones family. Round off all calculations to the nearest whole cent.

Assume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Jones family. Round off all calculations to the nearest whole cent.

4. The We Try Cleaning Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Cleaning. Job support Client support...... Other Total Total Cost $800,000 400,000 60,000 440,000 1,700,000 Total Activity 20,000 hours 8,000 jobs 300 clients Not applicable The Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One client, the Jones family, requested 25 jobs during the year that required 120 hours of housecleaning. For this service, the client was charged $7,500