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please help with req 1-4!!! Gallotin Carpet Cleaning is a small, family owned business operating out of Bozeman, Montana. For its services, the company hos
please help with req 1-4!!!
Gallotin Carpet Cleaning is a small, family owned business operating out of Bozeman, Montana. For its services, the company hos always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.70 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 Cont Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00m) 7,500 hundred square feet Travel to jobs Miles driven 111,000 miles Job support Number of joba 2,100 Jobs other organisation-untaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $335,000 which includes the following costs: Wages $ 135,000 Cleaning supplies 27,000 Cleaning equipment depreciation 12,000 Vehicle expenses 29,000 office expenses 60,000 President's compensation 72,000 Total cost $ 335,000 Resource consumption is distributed across the activities as follows: 118 Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Wages 768 Cleaning supplies 100 08 Cleaning equipment depreciation 708 09 Vehicle expenses 05 office expenses 0! OS President's compensation 08 08 Job Support os 08 08 08 638 340 Other 138 08 301 238 378 668 Total 1001 1008 1008 1008 1000 1008 778 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 56-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 $136 20 (600 square feet o $22.70 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 Job Support Other Total $ Prepare the first stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation $ Total cost 0 0 $ OOOOOOO $ s 0$ Required Required 2 > Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your a 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 our 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 from the company's offices in Bozeman. Compute the cost of this job using intermediate calculations and final answer to 2 decimal places.) Cost of the job Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Recluired 4 The revenue from the Flying N Ranch was $136.20 (6 hundred square feet @ $22.70 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Customer margin Step by Step Solution
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