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need help with these last 2 Problem 5-20 (Algo) Evaluating the Profitability of Services [LO5-2, LO5-3, LO5-4, LO5-5] Gallatin Carpet Cleaning is a small, family-owned
need help with these last 2
Problem 5-20 (Algo) Evaluating the Profitability of Services [LO5-2, LO5-3, LO5-4, LO5-5] 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 $23.05 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 questlon using actlvity-based costing. After some discussion, she designed a simple system consisting of four actlvity cost pools. The actlvity cost pools and thelr actlvity measures appear below: The total cost of operating the company for the year is $349,000 which Includes the following costs: Resource consumption is distributed across the actlvitles as follows: on. Requlred: 1. Prepare the first-stage allocation of costs to the actlvity 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 actlvity-based costing system. 4. The revenue from the Flylng N Ranch was $92.20 ( 400 square feet @$23.05 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $92.20 (400 square feet @ $23.05 per hundred square feet). Calculate the customer margin earned on this job. Note: Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places. Job support consists of recelving calls from potentlal customers at the home office, scheduling Jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the actlvity cost pools. 2. Compute the actlvity rates for the actlvity 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 actlvity-based costing system. 4. The revenue from the Flylng N Ranch was $92.20 (400 square feet @$23.05 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. 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. Note: Round your intermediate calculations and final answer to 2 decimal placesStep by Step Solution
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