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Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $ 1 2 . 1
Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $ per hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerai travel time. The owner's daughter suggested answering this question by designing an activitybased costing system using the information shown below:
Activity Cost Popl
Cleaning carpets
Travel: to jobs
Job supporis
other organteattionsustaining costs and Hote captes costs
Activity Measure
Square feet cteaned s
Miles driven
Number of jobs
Wone
Activity for the Year
hundred square feet
miles
jobs
Not applicable
The total cost of operating the company for the year is $ which includes the following costs:
Wages
ctearing supplies
cleaning equipment depreciation
Venicile expenses
orfice expenses
Presidentis compensation
Tota cost
$
She distributed these operating costs across her four activities as follows:
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on
Required:
Prepare the firststage allocation of costs to the activity cost poots.
Compute the activity rates for the activity cost poois.
The company recenty completed a squarefoot carpetcleaning job at the Flying N Rancha mile roundtrip from the company's home office. Compute the cost of this job using the activitybased costing system.
The revenue from the Flying Ranch was $ square feet $$ per hundred square feet Calculate the customer margin earned on this job.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
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Compute the activity rates far the activity cost pools.
Note: Round your answers to decima places.
tableActivity Cost Poc,,Ael,Hivity RateCleaning carpets,sper hndred squaraTravel to jobs,$per mileJob support,$perjob.
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