ABC Corporation provides housecleaning services to its clients. It has an activity-bas are given below for the current year: Activity Cost Pool Cleaning. Job support Client support. Other Total Total Cost $274,170 99,066 9,796 110,000 $493,032 Total Activity 48, 100 hours 5,700 jobs 620 clients Not applicable Costs in the "Other" cost pool consist of organization-sustaining costs and are not ass. Below is the information about one particular client, Huron family, during the year: Jobs requested: Total housecleaning hours: Fees charged to the customer: 37 222 $2,350 Required: Compute the customer-level operating income of this customer for ABC Corporation u

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 8E: Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed...
icon
Related questions
Question

compute the customer level operating income of this customer for abc corporation using the companys activity based costing system

**Activity-Based Costing for Housecleaning Services – ABC Corporation**

ABC Corporation provides housecleaning services to its clients. It uses an activity-based costing system, with data provided below for the current year:

### Activity Cost Pool Overview:

| Activity | Total Cost | Total Activity |
|----------|-------------|----------------|
| Cleaning       | $274,170   | 48,100 hours   |
| Job support    | $99,066    | 5,700 jobs     |
| Client support | $9,796     | 620 clients    |
| Other          | $110,000   | Not applicable |

**Total Costs: $493,032**

Note: Costs in the "Other" cost pool consist of organization-sustaining costs and are not assigned to individual clients.

### Specific Client Information (Huron Family):

Below is the information about one particular client, the Huron family, during the year:

| Job Details                   | Amount   |
|-------------------------------|----------|
| Jobs requested                | 37       |
| Total housecleaning hours     | 222      |
| Fees charged to the customer  | $2,350   |

**Required:** 
Compute the customer-level operating income of this customer for ABC Corporation using the provided data.
Transcribed Image Text:**Activity-Based Costing for Housecleaning Services – ABC Corporation** ABC Corporation provides housecleaning services to its clients. It uses an activity-based costing system, with data provided below for the current year: ### Activity Cost Pool Overview: | Activity | Total Cost | Total Activity | |----------|-------------|----------------| | Cleaning | $274,170 | 48,100 hours | | Job support | $99,066 | 5,700 jobs | | Client support | $9,796 | 620 clients | | Other | $110,000 | Not applicable | **Total Costs: $493,032** Note: Costs in the "Other" cost pool consist of organization-sustaining costs and are not assigned to individual clients. ### Specific Client Information (Huron Family): Below is the information about one particular client, the Huron family, during the year: | Job Details | Amount | |-------------------------------|----------| | Jobs requested | 37 | | Total housecleaning hours | 222 | | Fees charged to the customer | $2,350 | **Required:** Compute the customer-level operating income of this customer for ABC Corporation using the provided data.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Conversion process
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning