Janz Painting Paints the Interiors and Exteriors of Homes and Commercial

question 8

Essay

Janz 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 by filling in the table below. Round off all calculations to the nearest whole cent.
b. Prepare an action analysis report in good form of a job that involves painting 54 square meters and has direct materials and direct labor cost of $1,380. The sales revenue from this job is $1,300.
For purposes of this action analysis report, direct materials and direct labor should be classified as a Green cost; painting overhead as a Red cost; and office expense as a Yellow cost.

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Definitions:

C fibres

Slow-conducting nerve fibers involved in transmitting thermal, mechanical, and chemical pain stimuli to the central nervous system.

Periaqueductal Fibres

These are neural pathways located in the periaqueductal gray matter of the brainstem, critical in modulating pain and defensive behavior.

Perceptual Experiences

Involve the interpretation and awareness of sensory information, allowing us to understand our environment through the senses.

Subjective

Refers to personal perspectives, feelings, or opinions entering the decision-making process, as opposed to objective, which is fact-based and uninfluenced by personal feelings.