ACC 216 - Exam Seve Sun 1 Galatin Carpet Cleaning is a smal family owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.10 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers--articularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college has suggested investigating this question using activity based costing. After some discussion, she designed a simple system consisting of la four activity cast pools The activity cost pools and their activity measures appear below. Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet Cleaned (205) 8.500 hundred square feet Travel to jobs Miles driven 271,000 miles Job support Number of jobs 2,000 jobs Other organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $357000 which includes the following costs: Wages $ 135,000 Cleaning supplies 32,000 Cleaning equipment depreciation 16,000 Vehicle expenses 37,00 office expenses 62,00 President's compensation 75.000 Total cost 5252000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Wages 72 124 Cleaning supplies 100 Cleaning equipment depreciation 78% Vehicle expenses 04 841 office expenses es Bu President's compensation Job Support es es Other 165 04 309 164 461 Total 1001 100 1005 1005 100 1005 564 264 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on Required: 1 Wages Distribution Resource Concurso Acresc Cleaning Travel to Job Carpets Jobs Support other Total 7 124 05 160 1804 Cleaning supplies 10 1001 Cleaning equipment depreciation 70104 04 30% 1005 Vehicle expenses 0 0 0 165 1004 orice expenses 04 44 10 President's compensation es 100 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so oni 56 264 Required: 1. Prepare the first stage allocation of costs to the activity cost pools 2. Compute the activity rates for the activity cost pools 3. The company recently completed 400 square foot carpet cleaning job at the Flying N Ranch 60-mile round-trip jaumey from the company's offices in Bozeman Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $88.40 (400 square feet o $22.10 per hundred square feet. Calculate the customer margineamed on this job Complete this question by entering your answers in the tabs below. Required 1 Recured 2 Requred Required The company recently completed a 400 square foot carpet-chaning job at the Hiving N Ranch - 60 mile round-trip journey from the company's offices in Bremen Compute the cost of this job using the activity-based costing system. (Round your intermediate clations and final answer to 2 decimal places) gured Me GA Hill Prev 1 of 6 Next >
