Prepare the first-stage allocation of costs to the activity cost pools. Compute
ID: 2486764 • Letter: P
Question
Prepare the first-stage allocation of costs to the activity cost pools. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) The company recently completed a 6 hundred square foot carpet-cleaning job at the Flying N ranch-a 54.00-mile round-trip journey from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.) The revenue from the Flying N ranch was $133.50 (6 hundred square feet at $22.25 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)Explanation / Answer
Cleaning Job 1 Carpets travel to Jobs Support Others Total Wages 105,640 19,460 13,900 139,000 Cleaning Supplies 31,000 31,000 Cleaning Equipment Depriciation 11,200 4,800 16,000 Vehicle Expenses 28,560 5,440 34,000 Office Expenses 35,960 22,040 58,000 presedent Compensation 20,250 60,750 81,000 Total Cost 147,840 48,020 56,210 106,930 359,000 Activity rate 2 Activity Cost pool Activity rate Cleaning Carpets (147840/14000) 10.56 Per Hundred Square feet Travel to Job (48020/136500) 0.352 per mile Job Support (56210/1600) 35.13 per job 3 Cleaning carpets 6336 travel to job 37.99 Job Support 35.13 Cost of Job 6,409