Ever Clean Company provides gutter cleaning services to residential clients. The company has enjoyed considerable growth in recent years due to a successful marketing cam- paign and favorable reviews on service-rating Web sites. Ever Clean owner Joanne Clark makes sales calls herself and quotes on jobs based on length of gutter surface. Ever Clean hires college students to drive the company vans to jobs and clean the gutters. A part-time bookkeeper takes care of billing customers and other office tasks. Overhead is allocated based on direct labor-hours (DLH). Joanne Clark estimates that her gutter cleaners will work a total of 1,000 jobs during the year. Each job averages 600 feet of gutter surface and requires 12 direct labor-hours. Clark pays her gutter cleaners $15 per hour, inclusive of taxes and benefits. The following table presents the budgeted overhead costs for 2018: Variable costs $ 78,000 Supplies ($6.50 per DLH) Fixed costs (to support capacity of 12,000 DLH) 25,000 Indirect labor Depreciation 17,000 Other 24,000 Total budgeted costs $144,000

QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v Calculate a predetermined overhead rate. Identify a logical cost driver as an allocation base for each cost pool. Allocate the costs to the cost object by multiplying the predetermined overhead rate by the actual amount of the cost driver used by the cost object. v Separate total overhead into cost pools.

36.A cost increases or decreases in intervals as activity changes.     a. historical cost b. step cost c. fixed cost d. flexible cost e. budgeted cost

iv)  Labour rate variance v)  Labour efficiency variance vi)  Overhead variances (both) d.Comment on your calculations produced in c above.