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Question - Roskam Housecleaning 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.
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
One particular client, the Haan family, requested 49 jobs during the year that required a total of 245 hours of housecleaning. For this service, the client was charged $2,500.
a. Compute the activity rates (i.e., cost per unit of activity) for the activity cost pools. Round off all calculations to the nearest whole cent.
b. Using the activity-based costing system, compute the customer margin for the Haan family. Round off all calculations to the nearest whole cent.
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