Question

Requirement 2,3, and 4 please.

4 points 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 $23.85 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 Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (008) 7,500 hundred square feet Travel to jobs Miles driven 163,500 miles Job support Number of jobs 1.700 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicole eBook Print References The total cost of operating the company for the year is $340,000 which includes the following costs: Wages cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 135,000 21,000 14,000 31,000 66,000 73,000 $ 340,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Job Wages 731 130 Cleaning supplies 1001 Cleaning equipment depreciation 731 Job Support 0 ot 08 other 148 00 270 Total 1001 1001 1000

Answer 1

Solutions:

1.

General Excel Poo-1.1 new - Microsoft Excel |xm File Home Insert Page Layout Formulas Data Review View X Cut Σ AutoSum, Calibri 11 A A Wrap Text General RA Copy Fill - Paste B I U F + Merge & Center % 4.9 Insert Delete Format Format Painter 0 Clear Conditional Format Cell Formatting as Table Styles Styles Sort & Find & Filter Select Editing Font Number Cells Clipboard F6 Alignment for First stage allocation of cost to activity cost pools D E F G H J K L M N 0 P 1 2 3 4. Gallatin Carpet 5 6 First stage allocation of cost to activity cost pools Cleaning Carpets Travel to Jobs Job Support Others 7 Particulars Total Cost 8 % % % % 9 73% 13% 0% 14% 10 11 Wages Cleaning Supplies Cleaning Equipment depreciation Vehicle Expenses Office Expense President's Compensation 100% 73% 0% Amount $98,550 $21,000 $10,220 $0 $0 $0 0% 27% Amount $17,550 $0 $0 $23,560 $0 $0 0% 0% 76% 0% 0% Amount $0 $0 $0 $0 $38,280 $24,820 0% 0% 0% 58% Amount $18,900 $0 $3,780 $7,440 $27,720 $48,180 $1,35,000 $21,000 $14,000 $31,000 $66,000 $73,000 12 13 0% 24% 42% 66% 14 0% 34% 15 16 Total $1,29,770 $41,110 $63,100 $1,06,020 $3,40,000 17 18 19 20 21 22 23 Sheet559 Ready Circular References Sheet560 Sheet561 Sheet562 Sheet530 Sheet223 (2) Sheet544 Sheet48 (7) Sheet782 (3) | HE 100% + 05:05 1 Type here to search ENG 01-08-2020

2 and 3.

General Excel Poo-1.1 new - Microsoft Excel Х File Home Insert Page Layout Formulas Data Review View Cut Σ AutoSum, Calibri 11 Α Α Wrap Text General RA Copy Fill - Paste B I U E a Merge & Center % 4.9 Insert Delete Format Format Painter 0 Clear Conditional Format Cell Formatting as Table Styles Styles Sort & Find & Filter - Select Editing Number Cells Clipboard 28 Font Alignment for Computation of Job Cost Q R S T U V W X Y Z AA AB 1 2 3 4 5 6 2 3 7 Determination of activity rate for each activity 8 9 Activity Estimated Overhead Cost Activity Base Usage of Activity Base Activity Rate 10 Computation of Job Cost Particulars Amount Cleaning Carpet (4*$17.30) $69.20 Travel to Jobs (54*$0.25) $13.50 Job Support $37.12 11 7500 12 Cleaning Carpets Travel to Jobs Job Support Other $1,29,770.00 Square feet cleaned $41,110.00 Miles driven $63,100.00 Nos of jobs $1,06,020.00 No allocation 163500 1700 $17.30 $0.25 $37.12 13 14 Total Cost $119.82 15 16 Total $3,40,000.00 17 18 19 20 21 22 23 Sheet559 Ready Circular References Sheet560 Sheet561 Sheet562 Sheet530 Sheet223 (2) Sheet544 Sheet48 (7) Sheet782 (3) HELL 100% + 1 Type here to search ENG 05:06 01-08-2020

4.

Customer Margin - Activity based costing
Particulars		Amount
Revenue		$95.40
Costs:
Cleaning Carpet	$69.20
Travel to Jobs	$13.50
Job Support	$37.12
Total Cost		$119.82
Customer Margin		-$24.42