ch5_hw_qa3_part1_sh Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Prepare the first-stage allocation of costs to the activity cost pools.CleaningCarpetsTravel toJob SupportOtherTotalJobsWagesCleaning suppliesCleaning equipment depreciationVehicle expensesOffice expensesPresident's compensationTotal cost Gallatin Carpet Cleaning is a small, family-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 $23.00 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 MeasureSquare feet cleaned (80s)Activity Cost PoolCleaning carpetsTravel to jobsJob supportActivity for the Year13,000 hundred square feetMiles driven310,50e milesNumber of jobs1,800 jobsOther (organization-sustaining costs and idlecapacity costs)NoneNot applicableThe total cost of operating the company for the year is $372,000 which Includes the148,00025,000WagesCleaning suppliesCleaning equipment depreciationVehicle expenses17,00038, e0e59,000Office expensesPresident's compensation85, 000Total cost372,000Resource consumption is distributed across the activities as follows:Distribution of Resource Consumption Across ActivitiesCleaningCarpetsTravelto JobsJob Support OtherTotalWagesCleaning suppliesCleaning equipment depreciationVehicle expensesOffice expenses77%1e%e%13%100%100%exe%100%73%e%ex27%100%e%75%ex25%1eexe%e%56%44%1eexPresident's compensationex30%78%100%Job support consists of recelving calls from potentlal customers at the home office, scheduling Jobs, billing, resolving Issues, and soon.Requlred: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 800 square foot carpet-cleaning job at the Flying N Ranch-a 55-mle round-trip journey fromthe 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 $184.00 (800 square feet @ $23.00 per hundred square feet). Calculate the customermargin earned on this job.Complete this question by entering your answers in the tabs below.

Given, Particulars Amount($) Wages…

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total Wages Cleaning supplies Cleaning equipment depreciation Vehiole expenses Office expenses President's compensation Total cost

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total Wages Cleaning supplies Cleaning equipment depreciation Vehiole expenses Office expenses President's compensation Total cost

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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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 investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 10,500 hundred square feet Travel to jobs Miles driven 96,500 miles Job support Number of jobs 1,700 jobs Other (costs of idle…
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 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 (00s) 10,500 hundred square feet Travel to jobs Miles driven 93,500 miles Job support Number of jobs 1,700 jobs Other (organization-sustaining costs and idle…
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 $23.10 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 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 (00s) 8,000 hundred square feet Travel to jobs Miles driven 131,500 miles Job support Number of jobs 2,100 jobs Other (organization-sustaining costs and idle…
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 $22.30 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 (00s) 9,500 hundred square feet Travel to jobs Miles driven 292,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…
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 $22.30 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 (00s) 9,500 hundred square feet Travel to jobs Miles driven 292,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…
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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 $22.25 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 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 Activity for the Year 13,500 hundred square feet 300,000 miles 1,700 jobs Number of…
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 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 9,000 hundred square feet 307,000 miles 2,000…
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