Rensing Groomers is in the dog-grooming business. Its operating costs are descri
ID: 2477398 • Letter: R
Question
Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Your answer is correct. Prepare a flexible budget for activity levels of 548, 600, and 662 direct labor hours. (List variable costs before fixed costs.) Your answer is correct. Calculate the total cost per direct labor hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, e.g. 10.25.) Your answer is incorrect. Try again. The groomers at Rensing normally work a total of 640 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 40% of the costs incurred. Determine what he should charge each pet owner for grooming. (Round answer to 2 decimal places, e.g. 10.25.) Charge per client $Explanation / Answer
Each gromming job normally rquires 1.3 Hours.
Direct Labour rate per hour = $ 13
Total Direct Labour Cost = $ 13 * 1.3 = $ 16,90
Profit ( 40% of 16.90) = 6.76
Charge per Client = $ 23.66