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question one part 1 part 2 part 3 part 4 Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its
question one
Gallatin Carpet Cleaning is a small, family-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 $23.45 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 Cost Pool Activity Measure Activity for the Year Cleaning Carpets Square feet cleaned (80) 7,000 hundred square feet Travel to jobs Miles driven 185,500 miles sob support Number of jobs 1,900 Jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $350.000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office penses President's compensation Total cost $ 137,000 32,000 14,000 38,000 59,000 70,000 $ 350,000 Resource consumption is distributed across the activities as follows Distribution of Resource Consumption Across Activities Cleaning Carpets Wages 72% Cleaning Supplies 100% Cleaning equipment depreciation 69% Vehicle expenses ork ottice expenses OK President's compensation Travel to Jobs Job Support other 195 125 ok ed 31% 85X 15% 63% 26% 7 8838 Teta 100% 100% 100% 180 100 LOOK 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 53-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 $140 70 600 square feet 523 45 per hundred square feet) Calculate the customer margin earned on this job Me Vehicle expenses 85% ex 15% 100% office expenses ex 63% 37% President's compensation 100% ex ex 26% 74% 100% 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 53-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 $14070 (500 square feet 8 523.45 per hundred square feet). Calculate the customer margineamed on this job Complete this question by entering your answers in the tabs below. Required 1 quired 2 Required 3 Required 4 Job Soppon Other Total Prepare the first stage allocation of costs to the activity cost pools Cleaning Carpets Travel Jobs Wages Cleaning supplies Clearing equipment depreciation Vide One Pension Required 2 > leaning equipment depreciation ehicle expenses Office expenses President's compensation 69% ex ex ex 86 85% ex ex ex ex 63% 26% 31% 15% 37% 74% 100% 100% 1008 100% ob 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 53-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 $14070 (600 square feet @ $23.45 per hundred square feet). Calculate the customer margin earned og this job Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places:) Activity Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs per mile Job Support per job Taw 111 Prey 1 of 5 Next > 00 Sup 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 53-mile round-trip jou 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 $140.70 (600 square feet @ $23.45 per hundred square feet) Calculate the cu margin earned on this job Complete this question by entering your 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 the Flying N Rancha 53-mile round-trip Journey from the company's offices in Bozeman, Compute the cost of this job using the activity based costing system. (Round your Intermediate calculations and finalanower to 2 decimal places Cost of the job ME S Prey 1 of 5 !!! Next Search o i Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Reagired 4 The revenue from the Flying N Ranch was $140.70 (6 hundred square feet $23.45 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 ina answers to 2 decimal places Customer margin leaning equipment depreciation ehicle expenses Office expenses President's compensation 69% ex ex ex 86 85% ex ex ex ex 63% 26% 31% 15% 37% 74% 100% 100% 1008 100% ob 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 53-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 $14070 (600 square feet @ $23.45 per hundred square feet). Calculate the customer margin earned og this job Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places:) Activity Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs per mile Job Support per job Taw 111 Prey 1 of 5 Next > 00 Sup 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 53-mile round-trip jou 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 $140.70 (600 square feet @ $23.45 per hundred square feet) Calculate the cu margin earned on this job Complete this question by entering your 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 the Flying N Rancha 53-mile round-trip Journey from the company's offices in Bozeman, Compute the cost of this job using the activity based costing system. (Round your Intermediate calculations and finalanower to 2 decimal places Cost of the job ME S Prey 1 of 5 !!! Next Search o i Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Reagired 4 The revenue from the Flying N Ranch was $140.70 (6 hundred square feet $23.45 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 ina answers to 2 decimal places Customer margin part 1
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