Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Resource consumption is distributed across the activities as follows. Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 78% 14% Cleaning supplies

image text in transcribed
Resource consumption is distributed across the activities as follows. Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 78% 14% Cleaning supplies 100% ex Cleaning equipment depreciation ex Vehicle expenses ex 83% office expenses ex ex President's compensation OX ex 67% Job Support Other ex 8% ex 0% ex 33% ex 17% 55% 45% 27% 73% Total 100x 100% 100% 100% 100% 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-a 52 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 $139.50 (600 square feet o $23 25 per hundred square feet). Calculate the customer margin earned on this job Resource consumption is distributed across the activities as follows. Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 78% 14% Cleaning supplies 100% ex Cleaning equipment depreciation ex Vehicle expenses ex 83% office expenses ex ex President's compensation OX ex 67% Job Support Other ex 8% ex 0% ex 33% ex 17% 55% 45% 27% 73% Total 100x 100% 100% 100% 100% 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-a 52 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 $139.50 (600 square feet o $23 25 per hundred square feet). Calculate the customer margin earned on this job

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

9th edition

290-1259222138, 1259222136, 978-1259222139

Students also viewed these Accounting questions