Lesson #5, Assignment #2 - Student Name Class Problem 08-22...

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Student Name: Class: Problem 08-22 GORE RANGE CARPET CLEANING Distribution of Resource Consumption Across Activity Cost Pools Cleaning Travel to Job Carpets Jobs Support Other Totals Wages 75% 15% 0% 10% 100% Cleaning supplies 100% 0% 0% 0% 100% Cleaning equipment depreciation 70% 0% 0% 30% 100% Vehicle expenses 0% 80% 0% 20% 100% Office expenses 0% 0% 60% 40% 100% President's compensation 0% 0% 30% 70% 100% Cleaning Travel to Job Carpets Jobs Support Other Totals Wages 105,000 21,000 0 14,000 $140,000 Cleaning supplies 25,000 0 0 0 25,000 Cleaning equipment depreciation 7,000 0 0 3,000 10,000 Vehicle expenses 0 24,000 0 6,000 30,000 Office expenses 0 0 36,000 24,000 60,000 President's compensation 0 0 22,500 52,500 75,000 Total cost $137,000 $45,000 $58,500 $99,500 $340,000 Correct! Correct! Correct! Correct! Correct! GORE RANGE CARPET CLEANING Activity Rates for Activity Cost Pools Total Activity Activity Cost Pool Total Cost Activity Rate Cleaning carpets $137,000 10,000 $13.70 per hundred square feet Travel to job 45,000 50,000 0.90 per mile Job support 58,500 1,800 32.50 per job GORE RANGE CARPET CLEANING Job Cost - Lazy Bee Ranch Activity Total Activity Cost Pool Rate Activity Cost Cleaning carpets $13.70 6 $82.20 per hundred square feet
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