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Unformatted text preview: of housecleaning. For this service, the client was charged $2,000. Part 1: Compute the activity rates for the activity cost pools. (cost per unit of activity) Cleaning $7.58 Job Support $20.74 Client Support $ 21.70 Other N/A Part 2: Using the ABC system, compute the customer margin for the Stewart family. Sales $2000 Costs: Cleaning $341.10 Job Support $933.30 Client Support $ 21.70 Total $ 1296.1 Customer Margin $703.9 Part 3: Assume the company decides to use a traditional costing system in which all costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Stewart Family. Sales $2000 Costs: Cleaning $682.20 Job Support $1866.60 Client Support $ 21.70 Total $ 2570.50 Customer Margin ($ 570.5)...
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