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

question 12

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.

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Definitions:

Anxieties Disorders

Mental health disorders characterized by significant anxiety and fear, impacting daily functioning.

Cognitive Therapists

Mental health professionals who provide therapy based on the concept that thoughts, feelings, and behaviors are interconnected and that altering one can change the others.

Depression-prone

Refers to individuals who have a higher susceptibility or tendency toward experiencing depression.

Cognitive-behavioral Therapy

A form of psychotherapy that treats problems by modifying dysfunctional emotions, behaviors, and thoughts.