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Check my work 5 Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged
Check my work 5 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 $23.35 per hundred square feet. However. there 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: 20 points 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 eBook Activity for the Year 9,eee hundred square feet 144, eee miles 2,eee jobs Not applicable None Print The total cost of operating the company for the year is $364.000 which includes the following costs: References Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 149,00 33, eee 8, Bee 29, eee 60, cea 85, Bee $ $364, eee Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 75% 13% Cleaning supplies 100% e% Cleaning equipment depreciation 71% 2% Vehicle expenses e% 82% Office expenses President's compensation 2% e% Job Support Other 12% 06 % 2% 29% 2% 18% 63% 3723 30% 70% Total 100% 100% 100% 100% 100% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on Check my work 5 Requlred: 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 a 400 square foot carpet-cleaning job at the Flying Nranch-a 55-mile round-trip journey 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 Nranch was $93.40 (400 square feet @ $23.35 per hundred square feet). Calculate the customer margin earned on this job. 20 points Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Print Prepare the first stage allocation of costs to the activity cost pools. Peterences Cleaning Job Support Carpets Travel to Jobs Other Total Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost (Required 1 Required 2 > Check my work 5 Vehicle expenses Office expenses President's compensation 82% 8% 86 63% 32% 18% 37% 70% 100% 100% 100% 20 points Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. eBook 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 a 400 square foot carpet-cleaning job at the Flying Nranch-a 55-mile round-trip journey 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 $93.40 (400 square feet @ $23.35 per hundred square feet). Calculate the customer margin earned on this job. Print Peterences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Cleaning carpets Travel to jobs Job support per hundred square feet per mile per job Check my work 07 21% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 75% 100% 71% 2% 2% 8 13% 8% 2% 82% 2% 12% 27 29% 18% 37% 70% 100% 100% 100% 100% 100% 100% 63% 30% 20 points Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. eBook 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 a 400 square foot carpet-cleaning job at the Flying N ranch-a 55-mile round-trip journey 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 Nranch was $93.40 (400 square feet @ $23.35 per hundred square feet). Calculate the customer margin earned on this job. Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company recently completed a 400 square foot carpet-cleaning job at the Flying N ranch-a 55-mile round-trip journey from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.) Cost of the job Check my work 5 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Carpets to Jobs 75% 13% 100% 71% 0% 8 82% 2% 2% Job Support Other 12% 86 0% 29% % 18 63% 37% 30% 70% Total 100% 100% 100% 100% 100% 100% 20 points Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. eBook Print Requlred: 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 a 400 square foot carpet-cleaning job at the Flying N ranch-a 55-mile round-trip journey 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 $93.40 (400 square feet @ $23.35 per hundred square feet). Calculate the customer margin earned on this job. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N ranch was $93.40 (4 hundred square feet @ $23.35 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.) Customer margin
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