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Unformatted text preview: since they arent selling it for enough money, while they could be losing sales on the regular one which is priced too high. P8-23 Cleaning carpets travel to jobs job support other Wages 75 15 10 Cleaning supplies 100 Cleaning equipment depreciation 70 30 Vehicle expenses 80 20 Office expenses 60 40 President's compensation 30 70 Costs Wages $140,000 Cleaning Supplies $25,000 Cleaning equipment depreciation $10,000 vehicle expenses $30,000 office expenses $60,000 president's compensation $75,000 Total $340,000 3 Allocating Costs Per activity cost Cleaning Carpets $137,000 13.70 82 Travel to jobs $45,000 0.90 47 Job support $58,500 32.50 33 Other $99,500 N/A 162 Total $340,000 5 I conclude that the company did not profit on this job at all. I would advise the president to price jobs so that they actually make money in the future....
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This homework help was uploaded on 04/07/2008 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .
- Spring '07