Problem 7-20

		Cleaning Carpets	Travel to Jobs	Job Support	Other	Total
	Wages
	Cleaning supplies
	Cleaning equipment depreciation
	Vehicle expenses
	Office expenses
	Presidents compensation
	Total cost

The activity rates are computed as follows:

	Activity Cost Pool	(a) Total Cost	(b) Total Activity		(a) (b) Activity Rate
	Cleaning carpets			hundred square feet		per _______
	Travel to jobs			miles		per _______
	Job support			jobs		per _______

3. The cost for the Flying N Ranch job is computed as follows:

	Activity Cost Pool	(a) Activity Rate		(b) Activity		(a) (b) ABC Cost
	Cleaning carpets		per _______		hundred square feet
	Travel to jobs		per _______		miles
	Job support		per _______		job
	Total					$________

4. The margin earned on the job can be easily computed by using the costs calculated in part (3) above.

	Sales
	Costs:
	_______________
	_______________
	_______________
	Margin		$______

5. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

I know this is technically more than one question, but I cannot post one without the other, or they would not make sense. Thank you very much!