Prepare the first-stage allocation of costs to the activity cost pools.
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| | Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | Wages | | | | | | Cleaning supplies | | | | | | Cleaning equipment depreciation | | | | | | Vehicle expenses | | | | | | Office expenses | | | | | | Presidents compensation | | | | | | Total cost | | | | | |
Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
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| Activity Cost Pool | Activity Rate | | Cleaning carpets | | per hundred square feet | Travel to jobs | | per mile | Job support | | per job | |
The company recently completed a 800 square foot carpet-cleaning job at the Flying N Rancha 54-mile round-trip journey from the companys 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.)
The revenue from the Flying N Ranch was $183.60 (8 hundred square feet @ $22.95 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.)
Gallatin Carpet Cleaning Is a small, famly-owned business operating out of Bozeman, Montana. For Its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.95 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 requlre considerable travel time. The owners 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 thelr activity measures appear below Activity Cost Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle Square feet cleaned (8es) Miles driven Nunber of fobs 9,888 hundred square feet 376,888 miles 1,688 jobs capacity costs) Not applicable The total cost of operating the company for the year is $356,000 which Includes the following costs: Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses $ 141,880 26,888 11,888 25,800 69,808 84,868 $ 356,808 s compensation Total cost Resource consumption Is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs 15% Job Total 100% 100% 100% 100% Cleaning supplies 100% 67% 77% Vehicle expenses Office expenses President's compensation 55% 29% 71% Job support consists of recelving calls from potential customers at the home office, schedulling Jobs, billing, resoling Issues, and s0 on. 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 800 square foot carpet-cleaning job at the Fiying N Ranch-a 54-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 $183.60 (800 square feet @ $2295 per hundred square feet).Calculate the customer margin earned on this Job