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Check my work Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a
Check my work 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 $23.00 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: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s)) Miles driven Number of jobs None Activity for the Year 8,000 hundred square feet 159,000 miles 1,800 jobs Not applicable The total cost of operating the company for the year is $352,000 which includes the following costs: Wages Cleaning supplies. Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 147,000 33,000 9,000 30,000 59,000 74,000 $ 352,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Wages Cleaning supplies Cleaning Travel to Carpets Jobs Job Support Other Total 729 148 OR 14 1008 100% 08 08 08 100% 1 blackboard: Office 365 ACC BOOK CIS BOOK MLA citation CE DZ wex Personal Blog ECO BOOK Reac Homework Problems Saved Help Save & Exit Submit VEDANAE M office expenses President's compensation Total cost J 59,000 74,000 $ 352,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Wages Cleaning supplies. Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Cleaning Travel to Carpets Job Jobs Support Other Total 724 149 0% 14 100% 100% 0% 100% 68% 0% 0 321 100% 0% 78% ON 22 100% 0% 08 628 38% 100% 0% 08 326 681 100% Check my work Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 $138.00 (600 square feet @ $23.00 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Prev 8 of 8 Next Homework Problems Saved Help Save & Exit Submit Check my work 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 $138.00 (600 square feet $23.00 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Cleaning Carpets Travel to Jobs Job Support Other Total $ 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 Prev 8 of 8 Next B Ook ck int Check my work Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 $138.00 (600 square feet $23.00 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. ences Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answer to 2 decimal places.) Activity Cost Pool Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet per mile per job 3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-mile round-trip journey fr 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 $138.00 (600 square feet @ $23.00 per hundred square feet). Calculate the custom margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 < Prev 8 of 8 Next 05 on. 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 $138.00 (600 square feet $23.00 per hundred square feet). Calculate the customer margin earned on this job. 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 $138.00 (6 hundred square feet @$23.00 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Customer margin
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