Question

Maintaining a clean working environment is important to Life is Great​, an industrial parts manufacturer. Cleaning the plant is the responsibility of the maintenance department. The 80,000 square foot plant is thoroughly cleaned from four to eight times a month depending on the level and stage of production. For the most recent​ month, March, the plant was cleaned four times. The production schedule for the next quarter​ (April through​ June) indicates that the plant will need to be cleaned​ five, six, and eight times respectively. Two of the resources needed to clean the plant are labor and cleaning supplies. The cost driver for both resources is number of times the plant is cleaned. Plant cleaning laborers are​ full-time employees who are paid the same wages regardless of the number of times the plant is cleaned. Cleaning supplies is a variable cost. The March cost of labor was $ 27,000 and cleaning supplies used cost $ 9,600.

Requirement 1. Prepare a table that shows how labor​ cost, cleaning supplies​ cost, total​ cost, and total cost per cleaning changes in response to the number of times the plant is cleaned. What is the predicted total cost of plant cleaning for the next​ quarter?

Begin by preparing a table that shows how labor​ cost, cleaning supplies​ cost, total​ cost, and total cost per cleaning changes in response to the number of times the plant is cleaned. ​(Do not round until the final answer for the cost per cleaning. Then round to the nearest whole​ dollar.)

Number of Times Plant is Cleaned	Square Feet Cleaned	Cleaning Supplies Cost	Total Cost	Cost Per Cleaning
4
5
6
7
8

Answer 1

(a)	Number of Times	Square	Labor	Cleaning	Total	Cost
	Plant is Cleaned	Feet	Cost	Supplies	Cost	Per Cleaning
		Cleaned ( 80,000 x no. of time plant cleaned )	(A)	Cost ( 2,400 per clearning ) (B)	(A+B)	(Total Cost/ No. of times plant cleaned )
	4	320,000	27,000	9,600	36,600	9,150
	5	400,000	27,000	12,000	39,000	7,800
	6	480,000	27,000	14,400	41,400	6,900
	7	560,000	27,000	16,800	43,800	6,257
	8	640,000	27,000	19,200	46,200	5,775

	Working:
	Cleaning supplies Cost per cleaning
	= 9,600 / 4
	= 2,400

(b)	Predicted total cost of plant cleaning for the next​ quarter

	Next quarter	Amount $
	April -5 Times	39,000
	May -6 Times	41,400
	June- 8 Times	46,200
	Total Quarter cost	126,600