O ezto.m tpx Gallatin Carpet Cleaning is a small, family-owned business operatin

Question

O ezto.m tpx 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 $23.60 per hundred square feet company is actually making any money on jobs for some cust ranches that require c has suggested investigating this question using activity-based costing. After some system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below there is some question about whether the y those located on remote able travel time. The owner's daughter, home for the summer from college a simple Cost Cleaning ca Travel to jobs Job support Other (costs of idle capacity and Square feet cleaned (00s) Miles driven 12,000 hundred square feet 172,500 miles Number of jobs 2,000 jobs The total cost of operating the company for the year is $337,000, which incdludes the following costs $ 145,000 26,000 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 8,000 28,000 57,000 73,000 Total cost $337.000

Explanation / Answer

3) Cost of job = (11.35*8+28.70*1+53*0.25) = 132.75

4) Customer margin income statement :

Sales 188.80 Costs Cleaning Carpet (11.35*8) 90.80 Travel jobs (53*0.25) 13.25 Job Support 28.70 Total cost 132.75 Net operating income 56.05

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

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