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Please solve them and focus on Part II art I Nazafah Carpet family-owned business operating out Al Ain of For its Cleaning is a smal,
Please solve them and focus on Part II art I Nazafah Carpet family-owned business operating out Al Ain of For its Cleaning is a smal, fee per hundred square feet services, company has always charged a flat However, of carpet the hundred square feet. cleaned The current fee some about whether the company actualy making any money on jobs for some question located is that require arty those on remote ranches considerable travel time. owners daughter, home for the summer from college, has suggested a investigating this question using activity-based costing. After some discussion, consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Measure Activity for the Year Activity Cost Pool 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 Other (costs of idle capacity and organization-sustaining costs). 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 60.000 Office expenses 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 Carpets Jobs Support Other Total 15% Wages 10% 10% 100% Cleaning supplies 0% 5% 100% Cleaning equipment 20% 0% 30% 100% depreciation Vehicle expenses 0% 20% 100% Office expenses 20% 40% 100% BUS 4133 Page 2
Please solve them and focus on Part II
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