They said to ask the other part of question in another request? Gallatin Carpet Cleaning is a small, famly-owned business operating out of Bozeman, Montana. For Its services, the company hasalways charged a flat fee per hundred square feet of carpet cleaned. The current fee Is $22.25 per hundred square feet. However,there Is some question about whether the company Is actually making any money on Jobs for some customers-particularly thoselocated on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, hassuggested Investigating this question using activity-based costing. After some discussion, she designed a simple system consisting offour activity cost pools. The activity cost pools and their activity measures appear below:Activity Cost PoolCleaning carpetsTravel to jobsJob supportOther (organization-sustaining costs and idlecapacity costs)Activity MeasureSquare feet cleaned (90s)Activity for the Year-13,500 hundred square feet300,000 miles1,700 jobsMiles drivenNumber of jobsNoneNot applicableThe total cost of operating the company for the year is $347,000 which Includes the following costs:24WagesCleaning suppliescleaning equipment depreciationVehicle expenses144,00032,0008,00026, 00056, 000office expenses81, eee$ 347, 000President's compensationTotal costResource consumption is distributed across the activitles as follows:Distribution of Resource Consumption Across ActivitiesCleaningTravelCarpets78%to Jobs11%Job Support Other11%TotalwagesCleaning suppliesCleaning equipment depreciationVehicle expensesOffice expensesPresident's compensation0%1e0%100%1ee%70%0%0%30%1e0%81%19%100%0% e%64%36%0%33%67%100%Job support consists of recetving calls from potential customers at the home office, scheduling Jobs. billing, resolving sues, and soon.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 55-mile round-trip journey fromthe company's offices In Bozeman. Compute the cost of this Job using the activity-based costing system. Resource consumptlon Is distributed across the activitles as follows:Distribution of Resource Consumption Across ActivitiesCleaningCarpetsTravelto JobsJob Support OtherTotal78%100%11%WagesCleaning suppliesCleaning equipment depreciationVehicle expensesOffice expensesPresident's compensation11%0%100%0%0%0%100%70%0%0%30%100%0%81%0%19%100%0%0%64%36%100%0%0%33%67%100%Job support consists of recelvVing calls from potentlal customers at the home office, scheduling Jobs, billing, resolving Issues, and son.Required:1 Prepare the first-stage allocatlon 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 55-mile round-trip Journey fromthe company's offices in Bozeman. Compute the cost of this Job using the activity-básed costing system.4. The revenue from the Flying N Ranch was $44.50 (200 square feet @ $22.25 per hundred square feet). Calculate the customermargin earned on this job.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch-a 55-mile round-trip journeyfrom the comnpany's offices in Bozeman, Compute the cost of this job using the activity-based costing system. (Round yourintermediate calculations and final answer to 2 decimal places.)Cost of the job

Activity Based Costing: Activity based costing is the method of identifying and assigning costs…

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 $2225 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 for the Year Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (ees) -13,500 hundred square feet 300,000 miles 1,700 jobs Miles driven Number of jobs None Not applicable The total cost of operating the company for the year Is $347,000 which Includes the following costs: $ 144,00e Wages Cleaning supplies cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 32,000 8,e0e 26, e00 56,eee 81, eee S 347,e0e Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Jobs 11 Job Support Other Total Carpets 78% wages Cleaning supplies Lleaning equipment depreciation Vehicle expenses 11% 1eer 100% es zex 81% 19% OFfice expenses 64% 36% 1ees President's compensation 33% 67% 1e0x Job support consists of recetving 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-cieaning Job at the Flying N Ranch-a 55-mile round-trlp journey from the company's offices In Bozeman. Compute the cost of this (ob using the activity-based costing system

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 $2225 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 for the Year Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (ees) -13,500 hundred square feet 300,000 miles 1,700 jobs Miles driven Number of jobs None Not applicable The total cost of operating the company for the year Is $347,000 which Includes the following costs: $ 144,00e Wages Cleaning supplies cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 32,000 8,e0e 26, e00 56,eee 81, eee S 347,e0e Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Jobs 11 Job Support Other Total Carpets 78% wages Cleaning supplies Lleaning equipment depreciation Vehicle expenses 11% 1eer 100% es zex 81% 19% OFfice expenses 64% 36% 1ees President's compensation 33% 67% 1e0x Job support consists of recetving 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-cieaning Job at the Flying N Ranch-a 55-mile round-trlp journey from the company's offices In Bozeman. Compute the cost of this (ob using the activity-based costing system

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 89TA

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