Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need this urgent Gollotin Corpet Cleaning is a smal, tamily-owned business operating out of Bozeman, Montana, For its services, the company has always charged a

need this urgent
image text in transcribed
image text in transcribed
Gollotin Corpet Cleaning is a smal, tamily-owned business operating out of Bozeman, Montana, For its services, the company has always charged a flat fee per hundred seuare feet of carpet cleaned. The curent fee is $23.20 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 colloge, has suggested investigating this question using activity-based costing. Afer some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear belew The total cost of operating the company for the year is $339.000 which includes the following costs: Rosource consumption is distributed across the activities as follows: Job support consists of teceiving calls from potential customers at the nome office, scheduling jobs, biling, resclving issues, and so Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compule the actovity rates for the activity cost pools. 3. The company recently completed a 400 sevare foot carpet-cleaning job at the Fining N Ranch-a 57 -mile round-trip journey from the company/s offices in Boreman. Compute the cost of this job using the activity-based costing system. 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 57 -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 $92.80 (400 square feet 0$23.20 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Prepare the first-stage allocation of costs to the activity cost pools

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Strayer University

1st Edition

0470603526, 978-0470603529

More Books

Students also viewed these Accounting questions

Question

Discuss what is meant by the term "cost data." 85

Answered: 1 week ago