lawlor uses one setup for the sheldon job and installs 35 plants what is the total c 645267
Product costing in an ABC system This exercise continues the Lawlor Lawn Service, Inc., situation Recall that Lawlor completed a special landscaping job for Sheldon’s Ideal Designs. If Lawlor had used activity based costing, Lawlor’s data about the job, including ABC information, would be as follows:
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Sheldon Job details: |
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Direct materials |
$700 |
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Direct labor |
$1,200 |
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ABC Costing Rates: |
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$275 per setup |
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$15 per plant |
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Requirements
1. Lawlor uses one setup for the Sheldon job and installs 35 plants. What is the total cost of the Sheldon job?
2. If Sheldon paid $3,900 for the job, what is the profit or loss under ABC?