1.
Activity Cost Pool | Total Cost | Total Activity | Cost driver |
Cleaning | 101574 | 16200 | 6.27 |
Job support | 32724 | 1800 | 18.18 |
Client support | 5472 | 320 | 17.1 |
Other | 100,000 |
Service charges | 2200 |
Cleaning [6.27*192 hours] |
1203.84 |
Job
support [18.18*32] |
581.76 |
Client support | 17.1 |
Customer margin | 397.30 |
2.
Overhead
rate [239770/16200] |
14.80061728 |
Service charges | 2200 |
Less:
Allocated costs [192 hours * 14.8006] |
2841.718519 |
Customer margin | -641.72 |
AaBbC Question 2 The ABC Cleaning Brigade Company provides housncleaning services to its clients The the...
Peramu Housecleaning provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Table 1 Activity Cost Pool Cleaning Job support...... Client support Other...... Total Cost RM 442,068 52.801 9,170 110,000 Total Activity 78,800 hours 1,900 jobs 350 clients Not applicable Total RM 614,039 The "Oiher" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. One particular...
The Superior Gardening Service provides gardening services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Total Activity Gardening $125,425 17.300 hours Job support 28.134 1,775 jobs Client support 4,530 280 clients Other 150.000 Not applicable Total $308.089 The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. One particular client, the...
provides housecleaning services to its verhead costs. The company has provided services to its Chients. The company uses has provided the following data The Coletti Cleaning Brigade Company provides housecleani an activity-based costing system for its overhead cos from its activity-based costing system. Total Cost Total Activity Activity Cost Pool $302,993 $43,100 hours Cleaning 79,100 Job Support 5,000 jobs 180 clients 3,348 Client Support 150,000 Other $535,441 Total The "Other activity cost pool consists of the costs of idle capacity...
Problem 3: Activity-Based Costing (20 points) University Student Cleanup provides housecleaning services to its clients (primarily university students). During its first year, USC had a simple business model where it charged its customers $24 per hour for services while paying its cleaning specialists $12 per hour. The owner simply assumed the 100% markup over hourly direct labor costs would be enough to cover all additional costs and make a good profit. Unfortunately, this did not tum out to be the...
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 $22.10 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...
Gore Range Carpet Cleaning is a family-owned business in Eagle-Vail, Colorado. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.65 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 more remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating...
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 $23.25 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...
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 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...
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 $22.40 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...
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 $23.50 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...