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 ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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