(Appendix 6A)Jackson Painting Paints the Interiors and Exteriors of Homes

Essay

(Appendix 6A)Jackson Painting paints the interiors and exteriors of homes and commercial buildings.The company uses an activity-based costing system for its overhead costs.The company has provided the following data concerning its activity-based costing system. The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
The company has already finished the first stage of the allocation process in which costs were allocated to the activity cost centers.The results are listed below: Required:
a.Compute the activity rates (i.e. , cost per unit of activity)for the Painting and Job Support activity cost pools.Round off all calculations to the nearest whole cent.
b.Prepare an action analysis report in good form of a job that involves painting 63 square meters and has direct materials and direct labor cost of $2, 070.The sales revenue from this job is $2, 500.
For purposes of this action analysis report, direct materials and direct labor should be classified as a Green cost;production overhead as a Red cost;and office expense as a Yellow cost.