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SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing

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SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery. Customer Service, and other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $1,180,000 610,000 490,000 520,000 380,000 680,000 $3,860,000 The distribution of resource consumption across the activity cost pools is as follows: Travel 50 70% 60% Pickup and Delivery 35% 5% 15% Customer Service 10 09 Other 59 25% 255 Totals 100% 1004 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 0% 09 0% 09 20% 5% 90% 30% 60% 105 50% 35% 100% 100% 100% Travel 50% 70% 609 Pickup and Delivery 35% 5% 15% Customer Service 10% 0% 0% Other 5% 25% 25% Totals 100% 100% 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 0% % 0% 04 20% 54 90% 30% 60% 10% 50% 35% 100% 100% 100% Required: Complete the first stage allocations of costs to activity cost pools, Pickup and Delivery Customer Service Travel Other Totals $ 0 0 0 0 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 14 per direct labor-hour Batch processing Number of batches $ 93 per batch Order processing Number of orders $ 280 per order Customer service Number of customers $ 2,638 per customer The company Just completed a single order from Interstate Trucking for 2.200 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $141.70 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $14.60 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the year. Interstate Trucking Customer Margin-ABC Analysis Costs Supporting direct labor Batch processing Order processing Custoner service Number of direct labor-hours Number of batches Number of orders Number of customers $ 14 per direct labor-hour $ 93 per batch $ 288 per order $ 2,638 per customer The company just completed a single order from Interstate Trucking for 2.200 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $14170 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $14.60 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the year. Interstate Trucking Customer Margin-ABC Analysis Costs 0 0 Customer margin 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 $23.40 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 (05) 13,000 hundred square feet Travel to jobs Miles driven 259,000 miles Job support Number of jobs 1,700 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $352,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 149,000 23,000 12,000 33,000 63,000 72,000 $352,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Wages 734 124 Other 15 Total 100 Job Support Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 734 124 Cleaning supplies 1004 04 Cleaning equipment depreciation 694 04 Vehicle expenses 04 775 Office expenses 04 09 President's compensation 08 04 89 09 624 32% Other -15% 09 31 234 384 685 Total 100% 100% 100% 1009 1004 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 55-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 $93.60 (400 square feet o $23.40 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first stage allocation of costs to the activity cost pools, Cleaning Carpets Travel to Jobs Job Support Other Total Wanne Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Other Total O 0 Prepare the first stage allocation of costs to the activity cost pools. Cleaning Travel to Carpets Jobs Job Support Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Omice expenses President's compensation Total cost $ 0 $ 0 $ 0 $ 0 0 0 0 0 $ 0 Required Required 2 > 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 55-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 $93.60 (400 square feet @ $23.40 per hundred square feet). Calculate the customer margin earned on 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 Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet per mile per job 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 55-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 $93.60 (400 square feet o $23.40 per hundred square feet). Calculate the customer 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 55-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 final answer to 2 decimal places.) Cost of the job 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 55-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 $93.60 (400 square feet o $23.40 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $93.60 (4 hundred square feet @ $23.40 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 final answers to 2 decimal places.) Customer margin

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