I am not understanding how numbers are found. Please show work so I can figure this out. Thank you so much for the help.
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, hos 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 (cos) 3,500 hundred square feet Travel to jobs Miles driven 434,000 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle Capacity costs) None Not applicable The total cost of operating the company for the year is $354,000 which includes the following costs $ Wages Cleaning Supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 143,290 31,000 10.000 39,000 58,000 73,000 354.000 5 Resource consumption is distributed across the activities as follows Job Support other ON 10% Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs 77% 1 Cleaning supplies 100% OK Cleaning equipment depreciation OK Vehicle expenses 0 XX office penses os President's compensation ON Total 100 100% 100% 100% 100% 173 59% 411 20 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 800 square foot carpet cleaning job at the Flying N Rancha 54 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 $18960 (800 square feet @ $2370 per hundred square feet). Calculate the customer margin earned on this job. Required 1 Required 2 Required 3 Required 4 Other Total Prepare the first stage allocation of costs to the activity cost pools. Cleaning Travel to Job Support Carpets Jobs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office oxpenses President's compensation Total cost 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 Activity Rate Cleaning carpets per hundred square feet Travel to jobs per mile Job support per job Required 1 Required 2 Required 3 Required 4 The company recently completed a 800 square foot carpet cleaning job at the Flying N Ranch -a 54 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 Required Required a Required The revenue from the Flying N Ranch was $189.60 (8 hundred square feet @ 523.70 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus olan Round your intermediate calculations and final answers to 2 decimal places) Customer margin 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 $2370 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 (0) 35,500 hundred square feet Travel to jobs Miles driven 434,000 miles Job support Number of jobs 1.800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $354,000 which includes the following costs The total cost of operating the company for the year is $354.000 which includes the following costs. Wages Cleaning Supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 143,000 31,000 10,000 39,000 58,000 23.00 $154.000 Total Resource consumption is distributed across the activities as follows Distribution of resource Conscomption across activities Cleaning Travel Carpets to Jobs Joli Support other Wages 77% 13 Cleaning Supplies 100 ex ex Cleaning equipment depreciation 67% ox Vehicle expenses 83% ox 17 Office expenses 59% President's compensation ex 70% ex 100% MK 100% 100% 100% 100% 100% 02 41% 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 800 square foot carpet cleaning Job at the Flying N Ranch a 54 mile round trip oumey 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 $189,60(800 square feet @ $2370 per hundred square feet) Calculate the customer margin earned on this job
