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I need help on all 4 thank you Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity
I need help on all 4 thank you
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 400 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. 4. The revenue from the Flying N ranch was $89.60 (400 square feet@ $22.40 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 1 Required 3 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Job Travel to Other Total Carpets Support Jobs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses 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 $22.40 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 Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Activity for the Year 11,500 hundred square feet 408,500 miles 1,800 jobs ization-sustaining costs and Ot idle capacity costs) Not applicable None The total cost of operating the company for the year is $348,000 which includes the following costs: S 137,000 Wages 25.000 ing supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 7,000 35,000 65,000 79,000 348,000 Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job to Jobs Other Total Carpets 791 Support 08 105 118 100% Wages leaning supplies 1 nt depreciation 32% Vehicle expenses 08 80% 0% 20% 100% Office expenses President's compensation 08 05 608 408 100% 08 25% 758 1008 08 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 activitv rates for the activitv cost DoolsStep by Step Solution
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