Question

Exercise 3B: Calculate rates of activity (Activity rates ) (value: 10 points) Pool Services, Inc. is a service company dedicated to the maintenance and cleaning of home pools. The owner understands that the costs depend on the amount of gallons of water in the pool, the distance to reach each customer and the total number of customers. It also depends on whether they are continuous use pools that require more maintenance or low-use pools that require more maintenance and the cleaning of the filters is considered separate as it requires one hour of employee labor and specific materials. Required: Use the annual costs and activities that are summarized below and calculate the activity rate for each of the cost activities. Total cost Activity rate $ 37.800 Cost activities Expected activity for each unit of measure of activity level (inductors) Maintenance of pools of 5,400,000 gallons of water from little use widely used pools Maintenance of pools of 1.800.000 gallons of water from much use widely used pools Filter cleaning 300 filter maintenance Trips to each pool 20,000 miles Billing and customer service | 40 customers $ 19,800 S 6,600 $ 5,600 $ 11,600

Answer 1

Exercise 3B > Answes Total Cost E Cost Activities Activity level (Inductors) @ Activity Rate. [B=A] ® 300 i maintenance of pools of 5400,000 gallons $378003) 37800$ Litt use of water 5400000 = 0.07 $/ gallon Maintanance of pools of 1800,000 gallons & 19800 = 198008 much use of water - 1800,000 = 0.011, s/ galloon Filter cleaning 300 filter $6600 = 6,600 $ Maintenance = 228 / filter onante Trips to each pool 20,000 miles $5600 5600$ 29000 = 0.28 $/ Mele Blaups Customer sowie go customes $11600 — 11600 = 2908/customer

40x8.75=350 15 700X8.75= 6125 Exescise 31 Answer - Particulars Direct laboro 300X8.75$=2626 700x895=6125 40 5 . § 2625 $ 6125 $ 350 machine poolesi 1300X 3.75,*=4575 1900X3.156=7125 30X375123 3-ng > S 4875 57125 $112.5 3 Machine S 2x50$ = 100 3450=150 [2x50=10 preparatimi03) 100 $ 150 $ 100 pooduction | 1X200 = 200 4X200 = 800 2X200 = 400 • Odder (Art & 200 $800 s 400 shipping 4x150 = 600 6X150=900X150 =300 • Standeng f $ 600 $ 900 & 300 - product - suppor (vi 9 x 1000 =1000 s 1000 4 X 1000-1000 101000 = 1000 $ 1000 $ 1000 TOTAL Indirect Cost 9400 $ 16,100 2262.5