Question

PetSmart, Inc. is a large specialty pet retailer of services and solutions for the needs of pets. In addition to selling pet food and pet products, PetSmart also offers dog grooming services including bath, nail trim, teeth brushing, aromatherapy to reduce everyday stress, and nail polish and stickers. PetSmart even offers a Top Dog service that includes a premium shampoo, milk bath conditioner, scented cologne spritz, teeth brushing, and bandana or b Assume PetSmart, Inc. expects to incur $380,000 of indirect costs this year. The company allocates indirect costs based on the following activities: :: (Click the icon to view the data.) Read the requirements Requirement 1. Calculate the predetermined overhead allocation rate for each activity. (Abbreviation used: qty = quantity. Round your answers to the nearest cent, X.XX.) Estimated overhead costs 60,000 Estimated qty of the allocation base 20.000 Predetermined OH allocation rate = $ 3.00 Admissions $ $ $ Cleaning Grooming 240,000 80,000 100,000 4,000 2.40 20.00 $ Requirement 2. Assume a customer brought in Sophie, a beagle, for Top Dog service. PetSmart used the following resources: :: (Click the icon to view the resources used on Sophie for Top Dog service.) Determine the total cost of the Top Dog service for Sophie assuming the total direct materials cost was $3.50 and the total direct labor cost was $12 per DLHr. (Round all amounts to the nearest cent, X.XX.)

Answer 1

Requirement 2:

Top Dog Service costs
for Sophie the beagle
Direct materials		$3.50
Direct labor		$12.00
Overhead:
Admissions [1 x $3.00]	$3.00
Cleaning [1 x $2.40]	$2.40
Grooming [0.50 x $20.00]	$10.00
Total overhead		$15.40
Total cost		$30.90