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Cleanlng equrpment depreciation DS'VO U'Vo U'Vo J'I '70 'l UU'Vo Vehicle expenses 0% 76% 0% 24% 100% Office expenses 0% 0% 63% 37% 100% President's
Cleanlng equrpment depreciation DS'VO U'Vo U'Vo J'I '70 'l UU'Vo Vehicle expenses 0% 76% 0% 24% 100% Office expenses 0% 0% 63% 37% 100% President's compensation 0% 0% 28% 72% 100% Job support consists of receiving calls from potential customers at the home ofce. 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 400 square foot carpetcleaning job at the Flying N Rancha 60mile roundtripjourney from the company's offices in Bozeman. Compute the cost of this job using the activitybased costing system. 4. The revenue from the Flying N Ranch was $89.60 (400 square feet @ $22.40 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 rst-stage allocation of costs to the activity cost pools. Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Totalcost $ 0 $ 0 $ 0 $ 0 $ Cleaning equipment ueprecratlon bU'Vo U"/o U"/o 31% 100% Vehicle expenses 0% 76% 0% 24% 100% Office expenses 0% 0% 63% 37% 100% President's compensation 0% 0% 28% 72% 100% Job support consists of receiving calls from potential customers at the home ofce. 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 400 square foot carpet-cleaning job at the Flying N Rancha 60-mile round-trip journey from the company's offices in Bozeman. Compute the cost of thisjob using the activity-based costing system. 4. The revenue from the Flying N Ranch was $89.60 (400 square feet @ $22.40 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 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Cleaning carpets per hundred square feet Travel to jobs per mile Job support Vehicle expenses 0% 70% 0% i4% 100% Office expenses 0% 0% 63% 37% 100% President's compensation 0% 0% 28% 72% 100% Job support consists of receiving calls from potential customers at the home ofce, scheduling jobs, billing, resolving issues, and so on. iequired: l. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. i. The company recently completed a 400 square foot carpetcleaning job at the Flying N Rancha 60mile roundtrip journey from the company's offices in Bozeman. Compute the cost )f this job using the activity-based costing system. i. The revenue from the Flying N Ranch was $89.60 (400 square feet @ $22.40 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 company recently completed a 400 square foot carpetcleaning job at the Flying N Rancha 60mile roundtrip journey from the company's offices in Bozeman. Compute the cost of this job using the activitybased costing system. (Round your intermediate calculations and final answer to 2 decimal places.) Cost of the job I I Cleaning eqUIpment oeprematlon DEV/o U\"/o U"/o J'I'VO 'IUU'Vo Vehicle expenses 0% 76% 0% 24% 100% Office expenses 0% 0% 63% 37% 100% President's compensation 0% 0% 28% 72% 100% 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 rststage 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 Rancha (SO-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 $89.60 (400 square feet @ $22.40 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 $89.60 (400 square feet @ $22.40 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 nal answers to 2 decimal places.) Customer margin I I 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 $22.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customersparticularly 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 activitybased 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 Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (005) 14,500 hundred square feet Travel to jobs Miles driven 173,000 miles Job support Number ofjobs 1,700 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $365,000 which includes the following costs: Wages $ 142,000 Cleaning supplies 26,000 Cleaning equipment depreciation 18,000 Vehicle expenses 33,000 Office expenses 63,000 President's compensation 33,000 Total cost $ 365,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Job Support Other Total Wages 77% 12% 0% 11% 100% Cleaning supplies 100% 0% 0% 0% 100% Cleaning equipment depreciation 69% 0% 0% 31% 100% Vehicle expenses 0% 76% 0% 24% 100% Office expenses 0% 0% 63% 37% 100% President's compensation 0% 0% 28% 72% 100% Job support consists of receiving calls from potential customers at the home ofce, scheduling jobs, billing, resolving issues, and so on. Required
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