Ch 9 Gallatin Carpet Cleaning is a small, 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 $28 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly 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 four activity cost pools. The activity cost pools and their activity measures appear below: 11.12 points Skipped Activity Cost Pool Cleaning carpets Travel to Jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (ees) Miles driven Number of jobs Activity for the Year 20,000 hundred square feet 60,000 miles 2,000 Jobs eBook Print None Not applicable References The total cost of operating the company for the year is $430,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 158,000 40,000 20,000 80,000 60,000 80,000 $430,000 P Do you want to exit ta To turn on tablet mode Settings or action cent Always ask me before switcl Yes Mc Graw Ch 9 Gallatin Carpet Cleaning is a small, 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 $28 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly 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 four activity cost pools. The activity cost pools and their activity measures appear below: 11.12 points Skipped Activity Cost Pool Cleaning carpets Travel to Jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (ees) Miles driven Number of jobs Activity for the Year 20,000 hundred square feet 60,000 miles 2,000 Jobs eBook Print None Not applicable References The total cost of operating the company for the year is $430,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 158,000 40,000 20,000 80,000 60,000 80,000 $430,000 P Do you want to exit ta To turn on tablet mode Settings or action cent Always ask me before switcl Yes Mc Graw
