Question

Sylvia's Housecleaning Service 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 Total Cost Total Activity
Cleaning $252,787 44,900 hours
Job support $73,758 5,700 jobs
Client support $7,668 270 clients
Other $230,000 Not applicable
Total $564,213
the hoium family requested 45 jobs during the year that required a total of 90 hours of housecleaning. for the service, the client was charged $2000.
Required
a. compute the activity rates for the activity cost pools. round off to nearest whole cent.
b. using activity based costing system. compute the customer margin for the hoium family. round off all calculation to the nearest whole cent.
c. assume compan used traditional costing system instead in which all costs allocated to customers on the basis of cleaning hours. compute the margin for the hoium family

Answer 1

The answer is c , assume compan used traditional costing stystem