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:
beginarraylr
Sheldon Job details:
Direct materials & 7a00 Direct labor & 1,200endarray
ABC Costing Rates:
275 per setup15 per plant
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?