Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming

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Rensing Groomers Is In The Dog Grooming Business Its Operating Costs Are Described By The Following Formulas Grooming 1 (131.22 KiB) Viewed 11 times

Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Y - $0+$3x Direct labor (variable) $0+ $13x Overhead (mixed) y $10,200+ $1x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Your Answer Correct Answer Your answer is correct. Prepare a flexible budget for activity levels of 530, 570, and 680 direct labor hours. (List variable costs before fixed costs) Activity Level Direct Labor Hours Variable Costs Grooming Supplies Direct Labor Overhead Total Variable Costs Fixed Costs Overhead Total Fixed Costs Total Costs eTextbook and Media (c) & (d) Activity level 1 Activity level 2 $ $ Activity level 3 $ RENSING GROOMERS Flexible Budget 1590 Charge per client $ 6890 530 9010 10200 10200 19210 530 i 1710 7410 570 9690 10200 10200 (c) 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.) 19890 570 i $ Attempts: 2 of 2 used (d) The groomers at Rensing normally work a total of 650 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.)