Book Print ciences Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana....
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Book Print ciences 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 $22.85 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 Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None Activity for the Year 7,500 hundred square feet 261,000 miles 1,800 jobs Not applicable The total cost of operating the company for the year is $345,000 which includes the following costs Wages cleaning equipment depreciation Cleaning supplies Vehicle expenses office expenses President's compensation Total cost $ 140,000 21,000 10,000 39,000 61,000 74,000 $345,000 Resource consumption is distributed across the activities as follows Book Print ferences Distribution of Resource Consumption Across Activities Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Cleaning Travel to Carpets Jobs. Job Support Other Total 72% 11% ex 17% 100% 100x ex 0% ex 100% 73% ex ex 27% 100% ex 78% ex 22% 100% 0x ex 60% 40% 100% ex 0% 25% 75% 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 200 square foot carpet-cleaning job at the Flying N Ranch-a 56-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 $45.70 (200 square feet @$22.85 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. 9 ints 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22.85 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 eBook Print Prepare the first-stage allocation of costs to the activity cost pools. References Wages Cleaning Carpets Travel to Jobs Job Support Other Total 0 0 Cleaning supplies Cleaning equipment depreciation Vehicle expenses 0 0 Office expenses President's compensation 0 Total cost $ 0 S 05 0 Required 2 > 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22.85 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 ok Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) nt ences Activity Cost Pool Activity Rate Cleaning carpets Travel to jobs Job support per hundred square feet per mile per job < Required 1 Required 3 > CH 9 oints eBook 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22.85 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 Print References The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch-a 56-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 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22 85 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 revenue from the Flying N Ranch was $45.70 (200 square feet $22.85 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.) Book Print ferences Customer margin capacity costs) None Not applicable The total cost of operating the company for the year is $345,000 which includes the following costs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation $ 140,000 21,000 10,000 39,000 61,000 74,000 $ 345,000 Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Wages cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Cleaning Travel to Carpets Jobs Job Support Other Total 72% 11% 0% 17% 100% 100% ex ex 0% 100% 73% ex 0% 27% 100% 0% 78% 0% 22% 100% 0% 0% 60% 40% 100% 0% ex 25% 75% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. L Required: Book Print ciences 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 $22.85 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 Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None Activity for the Year 7,500 hundred square feet 261,000 miles 1,800 jobs Not applicable The total cost of operating the company for the year is $345,000 which includes the following costs Wages cleaning equipment depreciation Cleaning supplies Vehicle expenses office expenses President's compensation Total cost $ 140,000 21,000 10,000 39,000 61,000 74,000 $345,000 Resource consumption is distributed across the activities as follows Book Print ferences Distribution of Resource Consumption Across Activities Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Cleaning Travel to Carpets Jobs. Job Support Other Total 72% 11% ex 17% 100% 100x ex 0% ex 100% 73% ex ex 27% 100% ex 78% ex 22% 100% 0x ex 60% 40% 100% ex 0% 25% 75% 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 200 square foot carpet-cleaning job at the Flying N Ranch-a 56-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 $45.70 (200 square feet @$22.85 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. 9 ints 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22.85 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 eBook Print Prepare the first-stage allocation of costs to the activity cost pools. References Wages Cleaning Carpets Travel to Jobs Job Support Other Total 0 0 Cleaning supplies Cleaning equipment depreciation Vehicle expenses 0 0 Office expenses President's compensation 0 Total cost $ 0 S 05 0 Required 2 > 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22.85 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 ok Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) nt ences Activity Cost Pool Activity Rate Cleaning carpets Travel to jobs Job support per hundred square feet per mile per job < Required 1 Required 3 > CH 9 oints eBook 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22.85 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 Print References The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch-a 56-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 4. The revenue from the Flying N Ranch was $45.70 (200 square feet @ $22 85 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 revenue from the Flying N Ranch was $45.70 (200 square feet $22.85 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.) Book Print ferences Customer margin capacity costs) None Not applicable The total cost of operating the company for the year is $345,000 which includes the following costs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation $ 140,000 21,000 10,000 39,000 61,000 74,000 $ 345,000 Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Wages cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Cleaning Travel to Carpets Jobs Job Support Other Total 72% 11% 0% 17% 100% 100% ex ex 0% 100% 73% ex 0% 27% 100% 0% 78% 0% 22% 100% 0% 0% 60% 40% 100% 0% ex 25% 75% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. L Required:
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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