box (530) xMyOTC C Secure https/ Help Save 12 allatin Caroet Cleaning is a smai,

Question

box (530) xMyOTC C Secure https/ Help Save 12 allatin Caroet Cleaning is a smai, amily owned business operating out of Bozeman. Montana For is services, the c charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.80 per hundred square fe et. However r some customers-particularly those ther e is some question about whether the company is actually making any money on jo located on remote ranches that require considerable travel time The suggested investigating thi four activity cost pools. The activity cost pools and their activity measures 2.3 owner's daughter home for the summer from college, has s question using activity-based costing. After some discussion, she designed a simple system consisting of appear below Activity Cost Pool 14 Travel to jobs Job support Miles driven Number of jobs 418,808 miles 1,880 1obs Print The total cost of operating the company for the year is $352.000 which inciudes the following costs References Cleaning supplies Cleaning equipnent depreciation Vehicle 27,000 26,088 8% 0% 100% 18% 55% IC O Type here to search

Explanation / Answer

1

1 Prepare the first-stage allocation of costs to the activity cost pools Cleaning Carpets Travel to Jobs Job Support Other Total Wages $103,660 $14,200 $0 $24,140 $142,000 Cleaning supplies $27,000 $0 $0 $0 $27,000 Cleaning equipment depriciation $12,780 $0 $0 $5,220 $18,000 Vechile Expenses $0 $21,320 $0 $4,680 $26,000 Office Expenses $0 $0 $32,450 $26,550 $59,000 President's Compensation $0 $0 $20,000 $60,000 $80,000 Total Cost $143,440 $35,520 $52,450 $120,590 $352,000

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.