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please help , urgent ! Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, L07-3, L07-4, LO7-5) Gallatin Carpet Cleaning is a small, family-owned business
please help , urgent ! Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, L07-3, L07-4, LO7-5) 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 ceaned. 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 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 (05) 7,000 hundred square feet Travel to jobs Miles driven 155, 500 miles Job Support Number of jobs 2,000 Jobs other organitation sustaining costs and Idle capacity costs) None Not applicable The total cost of operating the company for the year is $368.000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 145,000 28,000 13,000 39,000 67,000 71,000 $_368,000 Resource consumption is distributed across the activities as follows: Resource consumption is distributed across the activities as follows: Travel to Jobs 14% Distribution of Resource Consumption Across Activities Cleaning Carpet Wages 71% Cleaning supplies 100% Cleaning equipment depreciation 67% Vehicle expenses ex Office expenses President's compensation 1ob Support ex ex ex Other 15% 0% Total 100% 100% 100% 100% 76% ox ox 24% 40% 70% 603 30x 100% 100% 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 200 square foot carpet-cleaning job at the Flying N Ranchi-a 51 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 $17.40 (200 square feet o $23.70 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 200 square foot carpet-cleaning job at the Flying N Ranch-a51-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 $47.40 (200 square feet a $23.70 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 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 tal $ 0 0 0 Wagos Cleaning Supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 05 $ 05 OS 0$ FE Required 2 > 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 200 square foot carpet cleaning job at the Flying N Ranch-a 51-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 $47.40 (200 square feet a $2370 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. 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 mile Job support por 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 200 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 $47.40 (200 square feet a $23.70 per hundred square feet). Calculate the customer margin earned on this 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 200 square foot carpet cleaning job at the Flying N Ranch-a 51-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: 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 200 square foot carpet-cleaning Job at the Flying N Rancha 51-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 $47.40 (200 square feet o $23.70 per hundred square feet). Calculate the customer margin earned on this job, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $47.40 (2 hundred square feet @ $23.70 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus slon. Round your intermediate calculations and final answers to 2 decimal places.) Customer margin
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