if sheldon paid 3 900 for the job what is the profit or loss under abc 556843

Product costing in an ABC system

This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 17 34 of Chapter 17. 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:

ABC Costing Rates:

$275 per setup

$15 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?