Gore Range Carpet Cleaning is a family-owned business in Eagle-Vail, Colorado. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.55 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 more 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, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below Activity for the Year 6,500 hundred square feet Activity Cost Pool Activity Measure Cleaning carpets Travel to jobs Job support Other (organization-sustaining Square feet cleaned (00s) Miles driven Number of jobs 372.500 miles 1,600 jobs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $363.000, which includes the following costs S 140,000 31,000 10,000 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 37,000 70,000 75,000 Total cost $ 363,000 Resource consumption is distributed across the activities as follows istribution of Resource Consumption Across Activities Carpets JobsSupport Other Total Cleaning Travel to Job 100% 100% 100% Wages Cleaning supplios Cleaning equipment depreciation Vehicle expenses Office expenses President's compensationn 76% 100% 71% 0% 0% 0% 12% 0% 0% 83% 0% 0% 0% 0% 63% 28% 12% 0% 29% 17% 37% 72% 100% 100% 100% t the home office, scheduling jobs, billing Job support consists of receiving calls from pote esolving issues, and so on Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. (Leave no ceils blank-be certain to enter "O" wherever required. Omit the "$" sign in your reeponeo) Job Travel to Jobs Other Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses Total cost 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Activity Cost Pool Activity Rate Cloaning carpets Travel to jobs Job support per hundred square feet per mile per job 3. The company recently completed a 6 hundred square-foot carpet-cleaning job at the Lazy Bee Ranch a 58.00-mile round-t p from the company's offices in Eagle Vail. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.) Cost 4. The revenue from the Lazy Bee Ranch was $135.30 (6 hundred square-feet at $22.55 per hundred square feet). Prepare a report showing the margin from this job. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response) Customore Range Carpet Cle in-Activity-Based Cost ting Click to soloct) (Click to select) (Click to select) (Click to select) Click to select)
