Lapi Liearing is a small family owned business operaung Out Of Bozeman, Montana, roris Services, the company has always charged a fiat fee per hundred square feet of carpet cleaned. The current fee is $23.35 per hundred square feet. However, here is some question about whether the company is actually making any money on jobs for some customers--particularly those ocated 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 ALIV y cous Pool vity Henare Activity for the Year Cleaning carpet square feet cleaned 10001 10,500 hundred square feet Travel to be les driven 417,000 miles Job support Washer of jobs 3.000 Joho other for talking Date and de capacity Boats Not Applicable The total cost of operating the company for the year is $360,000 which includes the following costs Wagen Cuaning polles Cleaning equipoant depreciation Vehicle expenses orelee expenses Presidente compensation Total cost 148.000 32.000 35,000 25.000 63,000 27.000 360,000 Resource consumption is distributed across the activities as follows: utrition of source Consumption Amos Activities Cleaning Travel to Joh Carpet Job Sport Other Total Ways 738 00 141 100 Cleaning supplies 100 00 04 04 2008 cleaning equipment depreciation 678 0 01 334 1000 Vehicle expenses 04 761 04 IOON ortice expenses 0 os 401 1001 President's compensation 03 200 710 1000 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, biling, resolving issues, and so on 341 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 500 square foot carpet cleaning job at the Flying N Ranch-a58 mille 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 $140.10 (600 square feet o $23.35 per hundred square feet). Calculate the customer margin earned on this job. 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 58-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 $140.10 (600 square feet o $23.35 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Prepare the first stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total $ 0 0 Wages Cleaning supplies Cleaning equipment depreciation Vahide expenses Office expenses President's compensation Total cost 0 0 0 $ 0 $ 0 0 $ 0$ $ 0 Papie Required 2 > company's offices in he revenue from the Flying N Ranch was $140.10 argin earned on this job. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 1 Required 2 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 per hundred square feet per mile per job Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 58-mile from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing sys! Intermediate calculations and final answer to 2 decimal places.) Cost of the job . The revenue tro margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required: The revenue from the Flying N Ranch was $140.10 (6 hundred square feet @ $23.35 per hundred square feet). C customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round y intermediate calculations and final answers to 2 decimal places.) Customer margin
