Exam #1 1 16 ok Problem 7-20 (Algo) Evaluating the Profitability of Services (LO7-2, LO7-3, LO7-4, LO7-5] Help Save & Exit Submit 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 $23.70 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 (ees) Miles driven Number of jobs None Activity for the Year 14,000 hundred square feet 264,500 miles 1,900 jobs Not applicable The total cost of operating the company for the year is $361,000 which includes the following costs: Wages Cleaning equipment depreciation Cleaning supplies Vehicle expenses office expenses President's compensation Total cost $142,000 35,000 15,000 39,000 59,000 71,000 $361,000 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 Job Carpets Jobs Support Other Total 16% B 100% 1004 05 M 0% 1004 73% 04 % 27% 100% 82% 18% 1804 0% 62% 38% 100% 32% 68% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on Exam #1 16 . potos 03:40 Seved Question 16 Exam # Help Save & Exit Submit 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 57-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 $142.20 (600 square feet 0 $23.70 per hundred square feet. Calculate the customer margin camed on this job. Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Required 4 References Prepare the first-stage allocation of costs to the activity cost pools. Wages Cleaning supplies Cleaning equipment depreciation Vehicle expense Ofice expenses President's compensation Total cost Cleaning Carpets Travel to Jobs Job Support Other Total Required 2 > points 203.40.15 eBook 2. Compute the activity rates for re 3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 57-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 $142.20 (600 square feet margin earned on this job. Complete this question by entering your answers in the tabs below. $23.70 per hundred square feet). Calculate the customer References 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 Cost Pool Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet i per mile per job 03-4005 ellook 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 57-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 $142.20 (600 square feet @ $23.70 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Fate The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 57-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 Required 2 Required 4 > 16 .22 Next > 03:39.57 eBook 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 57-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 $142.20 (600 square feet $23.70 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 31 Required 4 The revenue from the Flying N Ranch was $142.20 (6 hundred square feet @$23.70 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 16 points 03700 look References Problem 7-20 (Algo) Evaluating the Profitability of Services (LO7-2, LO7-3, L07-4, L07-5] Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a fat fee per hundred square feet of carpet cleaned. The current fee is $23.70 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 (0s) Miles driven Number of jobs None Activity for the Year 14,000 hundred square feet 264,500 miles 1,900 jobs Not applicable The total cost of operating the company for the year is $361,000 which includes the following costs: Mages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $142,000 35,000 15,000 39,000 59,000 71,000 $361,000 Mc Graw Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Mages Carpets 76% Jobs 16 Support Other Total 8% 100 Cleaning Supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation 100% 1004 734 04 27% 100% N 10% 100% 06 on 62% 38% 100% 32% 60% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so < Prev 16 of 22 Next > 1 Cleaning supplies Cleaning equipment depreciation Vehicle expenses 16 office expenses points 033642 References President's compensation 100% 73% 6 66666 6 100% 04 27% 100% 04 18% 100% 62% 38% 100% 324 68V 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 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 57-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 $142.20 (600 square feet a $23.70 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 $142.20 (6 hundred square feet customer margin earned on this job. (Negative customer margins should be intermediate calculations and final answers to 2 decimal places.) Customer margin $23.70 per hundred square feet). Calculate the indicated with a minus sign. Round your Required 3 flook margin earned on this job. Complete this question by entering your answers in the tabs below. D Werences Required 1 Required 2 Required 3 Required 4 aw Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total Wages Cleaning supplies Cleaning equipment depreciation $ O 0 0 Vehicle expenses 0 D Office expenses 0 President's compensation $ 0 $ 0 $ 0 $ 0 $ 0 Total cost Required 2 > eBook the company's offices in Bozeman. 4. The revenue from the Flying N Ranch was $142.20 (600 square feet $23.70 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. References Required 11 Required 2 Required 3 Required 4 Mc Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet per mile per job < Required 1 Required 3 > < Prev 16 of 22 Next > ellook 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 $142.20 (600 square feet @ $23.70 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. References 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 57-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 Mc < Prev 16 of 22 Next > (Growt ok 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 aw The revenue from the Flying N Ranch was $142.20 (6 hundred square feet @ $23.70 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