Question

Paste A1 xfic Given Data PO7-20: B. H I 1 Given Data PO7-20 GORE RANGE CARPET CLEANING Current carpet cleaning fee (per 100 sq. feet) $ 22.95 5 Cost Pool: Measure Activity for the Year Square feet cleaned (00s) Miles driven 10,000 hundred square 10 Cleaning carpets Travel to jobs 50,000 miles 1,800 jobs Job support 13 2 Number of jobs Other (costs of idle capacity and Not applicable 15 16 Total cost of operating the company for the year 17 Wages 8 Cleaning supplies 19 Cleaning equipment depreciation $ 140,000 25,000 10,000 30,000 60,000 75,000 S 340,000 20 Vehicle expenses Office expenses 22 President's compensation 3 Total cost Distribution of Resource Consumption Across Activity Cost Pools Cleaning Travel to s Jobs Support Other 10% 28 29 Wages 0 Cleaning supplies 31 Cleaning equipment depreciation 2 Vehicle expenses 3 Office expenses Carpets 75% 100% 0% 0% 15% 0% 0% Totals 100% 100% 100% 100% 100% 100% 70% 35 7 Part 3 information 8 Size of job (square feet) 600 driven round trip $ 137.70 S 22.95 per 100 square feet 4PO7-19 Given P07-19 P07-20 Given P07-20+ Ready

Answer 1

Answer 1
Distribution of Resource Consumption across activity cost pools
	Cleaning Carpets	Travel to Jobs	Job Support	Other	Total
Wages	$105,000.00	$21,000.00	$0.00	$14,000.00	$140,000.00
Cleaning Supplies	$25,000.00	$0.00	$0.00	$0.00	$25,000.00
Cleaning Equipment depreciation	$7,000.00	$0.00	$0.00	$3,000.00	$10,000.00
Vehicle expenses	$0.00	$24,000.00	$0.00	$6,000.00	$30,000.00
Office Expenses	$0.00	$0.00	$36,000.00	$24,000.00	$60,000.00
President's Compensation	$0.00	$0.00	$22,500.00	$52,500.00	$75,000.00
Total	$137,000.00	$45,000.00	$58,500.00	$99,500.00	$340,000.00
Answer 2
GORE RANGE CARPET CLEANING
Activity rates for Activity Cost Pools
Activity Cost Pool	Total Cost	Total Activity	Activity Rate
Cleaning Carpets	$137,000.00	10000	$13.70	per hundred square feet
Travel to Jobs	$45,000.00	50000	$0.90	per mile
Job Support	$58,500.00	1800	$32.50	per job
Answer 3
GORE RANGE CARPET CLEANING
Job Cost - Lazy B Ranch
Activity Cost Pool	Activity Rate	Activity	Total Cost
Cleaning Carpets	$13.70	6	$82.20
Travel to Jobs	$0.90	52	$46.80
Job Support	$32.50	1	$32.50
Total			$161.50
Answer 4
GORE RANGE CARPET CLEANING
Product Margin
Sales		$137.70
Costs :
Cleaning Carpets	$82.20
Travel to Jobs	$46.80
Job Support	$32.50	$161.50
Product Margin		-$23.80