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 feet is $22.15 per hundred square feet. how I am doing there is some question about whether their company is actually making any money on jobs for some customers particularly those located on remount ranches that require considerable travel time the owners daughter Home for the summer from college has for activity cost pools the activity cost falls and their activity measures up here below:

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 office is in buzeman. compute the cost of this job using the activity based costing system.

The revenue from the flying n ranch was $132.90 calculate the customer margin earned on the job.

Problem 7-20 (Algo) Evaluating the Profitability of Services (LO7-2, LO7-3, L07-4, LO7-5) 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 $22.15 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 Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (205) 11,500 hundred square feet Travel to jobs Miles driven 180,500 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle capacity costs) None 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 $ 148,000 21,000 7.000 37,000 56,000 83,000 $ 352,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Wages 765 165 Cleaning supplies 100% 05 Cleaning equipment depreciation 724 09 es Vehicle expenses 09 784 Other 84 05 28N 224 Total 1001 100% 1000 1001 Gyurta un any au idle capacity costs) None 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 $ 148,000 21,000 7,800 37,000 56,000 83,000 $ 352,800 Resource consumption is distributed across the activities as follows: Support 04 Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 764 169 Cleaning supplies 1084 09 Cleaning equipment depreciation 729 09 Vehicle expenses 09 789 Office expenses 89 President's compensation 04 8% % 624 28% Other 84 0% 28% 22 384 724 Total 1004 1004 100% 1084 100 1004 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 $132.90 (600 square feet @ $22.15 per hundred square feet). Calculate the customer margin earned on this job. 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 $132.90 (600 square feet o $22.15 per hundred square feet). Calculate the customer margin eained on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Other Total es Propare the first stage allocation of costs to the activity cost pools. Cleaning Travel to Job Support Carpets Jobs Wages $ 112.480 $ 23,680 $ os Cleaning supplies 21.000 0 0 Cleaning equipment depreciation 5,040 0 0 Vehicle expenses 0 28,860 0 Office expenses 0 0 34.720 President's compensation 0 0 Total cost $ 138,520 $ 52,540 $ 57,000 $ 11,840 $ 0 1,960 . 8,140 148.000 21,000 7,000 37,000 56.000 83,000 352,000 23.240 21,280 59,760 102,980 $ Required 2 > 5 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 - 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 $132.90 (600 square feet e $22.15 per hundred square feet). Calculate the customer margin eared on this job. BOOK Print Complete this question by entering your answers in the tabs below. ciences 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 $ 12.05 per hundred square feet $ 0.29 por mile $ 28.98 per job 5 784 04 09 09 es Vehicle expenses office expenses President's compensation US 624 284 224 38% .724 100 1001 1004 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so ts on Book 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 - 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 $132.90 (600 square feet o $22.15 per hundred square feet). Calculate the customer margin earned on this job erine Complete this question by entering your answers in the tabs below. ences Required 1 Required 2 Required 3 Required 4 The company recently completed a 600 square foot carpet-cleaning sob 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.) Cont of the job Required 2 Required 4 > 789 5 04 624 289 224 389 .725 100 100 100 Vehicle expenses office expenses President's compensation es Job support consists of receiving calis 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 $132.90 (600 square feet o $22.15 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 Rifquired 4 The revenue from the Flying N Ranch was $132.90 (6 hundred square feet $22.15 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