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Please solve it very urgently Nazafah carpet cleaning is a smalt. tammi business operating out of Al Ain. the company has always charged a flat

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Nazafah carpet cleaning is a smalt. tammi business operating out of Al Ain. the company has always charged a flat per hundred square feet cleaned. current fee is AED hundred square However, on there is some question company is actually making any money about whether the ranches that require for some larly those located on remote customers-particu considerable travel time. owner's daughter, home for from college, has suggested a investigating this question using activity-based costing. After some discussion, consisting of four pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Measure Activity for the Activity Cost Pool Year 2.000 hundred Square feet Cleaning carpets cleaned (00s) square feet 100.000 miles Miles driven Travel to jobs Number of jobs 3,600 jobs Job support Not applicable None Other (costs of idle capacity and organization-sustaining costs). The total cost of operating the company for the year is AED 300.000, which includes the following costs: AED 80,000 Wages 20,000 Cleaning supplies. 20,000 Cleaning equipment depreciation 30,000 Vehicle expenses Office expenses 60,000 President's compensation. Total cost ............................AED 300,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Other Total 65% 10% 10% 100% Wages 15% Cleaning supplies 5% 0% 5% 100% Cleaning equipment 50% 0% 30% 100% depreciation Vehicle expenses 0% 20% 100% Office expenses 20% 40% 100% BUS 4133 Page 2

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