This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 16-36 of...

This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 16-36 of Chapter 16. Recall that Sherman completed a special landscaping job for Feimer’s Fancy Fonts. If Sherman had used activity-based costing, Sherman’s data about the job, including ABC information, would be as follows:

Requirements

1. Sherman uses one setup for the Feimer job and installs 20 plants. What is the total cost of the Feimer job?

2. If Feimer paid $2500 for the job, what is the profit or loss under ABC?