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-S requiring considerable travel time. The owner's daughter suggested answering this question by designing an activity- based costing system using the information shown below. Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Not applicable The total cost of operating the company for the year is $359,000 which includes the following costs: $ 141,000 22,000 Total cost Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None 71,000 78,000 $ 359,000 She distributed these operating costs across her four activities as follows: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 14,000 33,000 Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other 73% 0% 16% 100% 0% 0% 61% 0% 0% 0% 11% 0% 0% 79% 0% 0% Activity for the Year hundred square 08 0% 14,000 feet 116,500 miles 2,500 jobs 59% 27% Total 100% 100% 39% 100% 21% 100% 41% 100% 73% 100% Job support consists of receiving 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 400-square-foot carpet-c ning job at the Flying N Ranch-a 57-mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $52.60 (400 square feet @ $13.15 per hundred square feet). Calculate the customer margin earned on this job.

-S requiring considerable travel time. The owner's daughter suggested answering this question by designing an activity- based costing system using the information shown below. Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Not applicable The total cost of operating the company for the year is $359,000 which includes the following costs: $ 141,000 22,000 Total cost Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None 71,000 78,000 $ 359,000 She distributed these operating costs across her four activities as follows: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 14,000 33,000 Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other 73% 0% 16% 100% 0% 0% 61% 0% 0% 0% 11% 0% 0% 79% 0% 0% Activity for the Year hundred square 08 0% 14,000 feet 116,500 miles 2,500 jobs 59% 27% Total 100% 100% 39% 100% 21% 100% 41% 100% 73% 100% Job support consists of receiving 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 400-square-foot carpet-c ning job at the Flying N Ranch-a 57-mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $52.60 (400 square feet @ $13.15 per hundred square feet). Calculate the customer margin earned on this job.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1 requiring considerable travel time. The owner's daughter suggested answering this question by designing an activity- based costing system using the information shown below. ok 1 ht nces Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Not applicable The total cost of operating the company for the year is $359,000 which includes the following costs: $ 141,000 22,000 14,000 33,000 71,000 78,000 $ 359,000 She distributed these operating costs across her four activities as follows: Total cost Wages Cleaning supplies Cleaning equipment depreciation Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Vehicle expenses Office expenses President's compensation None Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other Total 73% 08 16% 100% 100% 0% 0% 100% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 61% 08 0% 0% 11% 0% 0 $ 0% 79% 0% 08 < Required 1 Activity for the Year hundred square 0% 0% 59% 27% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 14,000 feet 116,500 miles 2,500 jobs 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 400-square-foot carpet-cleaning job at the Flying N Ranch-a 57-mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $52.60 (400 square feet @ $13.15 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required Required Required Required 1 2 3 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Carpets Jobs Job Support 0 $ 39% 21% 41% 100% 73% 100% 100% 100% Other 0 $ Required 2 > $ Total 0 $ 0 0 0 0 0 0 0
Transcribed Image Text:1 requiring considerable travel time. The owner's daughter suggested answering this question by designing an activity- based costing system using the information shown below. ok 1 ht nces Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Not applicable The total cost of operating the company for the year is $359,000 which includes the following costs: $ 141,000 22,000 14,000 33,000 71,000 78,000 $ 359,000 She distributed these operating costs across her four activities as follows: Total cost Wages Cleaning supplies Cleaning equipment depreciation Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Vehicle expenses Office expenses President's compensation None Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other Total 73% 08 16% 100% 100% 0% 0% 100% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 61% 08 0% 0% 11% 0% 0 $ 0% 79% 0% 08 < Required 1 Activity for the Year hundred square 0% 0% 59% 27% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 14,000 feet 116,500 miles 2,500 jobs 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 400-square-foot carpet-cleaning job at the Flying N Ranch-a 57-mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $52.60 (400 square feet @ $13.15 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required Required Required Required 1 2 3 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Carpets Jobs Job Support 0 $ 39% 21% 41% 100% 73% 100% 100% 100% Other 0 $ Required 2 > $ Total 0 $ 0 0 0 0 0 0 0
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