Florian Plant Services completed a special landscaping job for Pierre Designs Company.Florian uses ABC and has the following predetermined overhead allocation rates:
$\begin{array}{llc}&& \text { Predetermined Overhead } \
\text { Activity } & \text { Allocation Base } &\text { Allocation Rate }\
\hline \text { Designing } & \text { Number of designs } & \$ 275 \text { per design } \
\text { Planting } & \text { Number of plants } & \$ 15 \text { per plant }
\end{array}$ The Pierre Designs project required $1,200 in landscape materials,$700 in direct labor,one design,and 35 plants.
Requirements:
1.What is the total cost of the work done for Pierre Designs?
2.If Pierre Designs paid $3,900 for the job,what is the operating income or loss?
3.If Florian desires an operating income of 50% of cost,how much should the company charge for the Pierre Designs project?

Question

Florian Plant Services completed a special landscaping job for Pierre Designs Company.Florian uses ABC and has the following predetermined overhead allocation rates:
 $\begin{array}{llc}&& \text { Predetermined Overhead } \
\text { Activity } & \text { Allocation Base } &\text { Allocation Rate }\
\hline \text { Designing } & \text { Number of designs } & \$ 275 \text { per design } \
\text { Planting } & \text { Number of plants } & \$ 15 \text { per plant }
\end{array}$ The Pierre Designs project required $1,200 in landscape materials,$700 in direct labor,one design,and 35 plants.
Requirements:
1.What is the total cost of the work done for Pierre Designs?
2.If Pierre Designs paid $3,900 for the job,what is the operating income or loss?
3.If Florian desires an operating income of 50% of cost,how much should the company charge for the Pierre Designs project?

Quizplus · Accepted Answer

The Answer of Florian Plant Services completed a special landscaping job for Pierre Designs Company.Florian uses ABC and has the following predetermined overhead allocation rates:
 $\begin{array}{llc}&& \text { Predetermined Overhead } \
\text { Activity } & \text { Allocation Base } &\text { Allocation Rate }\
\hline \text { Designing } & \text { Number of designs } & \$ 275 \text { per design } \
\text { Planting } & \text { Number of plants } & \$ 15 \text { per plant }
\end{array}$ The Pierre Designs project required $1,200 in landscape materials,$700 in direct labor,one design,and 35 plants.
Requirements:
1.What is the total cost of the work done for Pierre Designs?
2.If Pierre Designs paid $3,900 for the job,what is the operating income or loss?
3.If Florian desires an operating income of 50% of cost,how much should the company charge for the Pierre Designs project?

Florian Plant Services Completed a Special Landscaping Job for Pierre