Q PROBLEM 7-20 Evaluating the Profitability of Services LO7-2, LO7-3,LO7-4,LO7-5 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 $28 per hundred square feet However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, the designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool. Activity for the Year Activity Measure Square feet cleaned (00s) Cleaning carpets 20,000 hundred square feet Travel to jobs Miles driven 60,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle capacity costs)

Answers

Answer 1

Gallatin Carpet Cleaning can gain insights into the cost drivers of its operations and make informed decisions regarding pricing, customer selection, and resource allocation.

To evaluate the profitability of services for Gallatin Carpet Cleaning, the company has implemented an activity-based costing (ABC) system. The ABC system consists of four activity cost pools: cleaning carpets, travel to jobs, job support, and other (organization-sustaining costs and idle capacity costs). The activity measures for each cost pool are square feet cleaned (in hundreds), miles driven, and the number of jobs.

By using activity-based costing, Gallatin Carpet Cleaning can allocate costs more accurately to specific activities and customers. This helps in determining the profitability of each service and identifying areas where costs may be exceeding revenues. Let's analyze each activity cost pool:

1. Cleaning carpets: The activity measure for this cost pool is the square feet cleaned (in hundreds). It indicates the amount of work performed by the company. By multiplying the activity measure by the cost per hundred square feet ($28), the company can calculate the cost associated with cleaning carpets.

2. Travel to jobs: The activity measure for this cost pool is miles driven. It represents the travel distance required to reach customers' locations. The company can calculate the cost of travel by multiplying the activity measure by the cost per mile driven.

3. Job support: The activity measure for this cost pool is the number of jobs. It represents the support activities required to complete each job, such as customer communication, scheduling, and administration. The cost per job can be calculated by dividing the total cost for job support by the number of jobs.

4. Other (organization-sustaining costs and idle capacity costs): This cost pool includes costs that are not directly related to specific activities but are necessary for the overall operation of the business. These costs can be allocated based on a predetermined method, such as a percentage of total costs.

By assigning costs to each activity cost pool, Gallatin Carpet Cleaning can calculate the total cost of providing services to specific customers or customer groups. This allows the company to evaluate the profitability of each service based on actual costs incurred.

Through the implementation of activity-based costing, Gallatin Carpet Cleaning can gain insights into the cost drivers of its operations and make informed decisions regarding pricing, customer selection, and resource allocation. It helps the company identify areas of high costs and low profitability, enabling them to take necessary actions to improve efficiency and profitability in the long run.

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Related Questions

If you have an orientation where you are completing training exercises on a computer, it is probably a ____.
A new hire orientation
B interactive orientation
C reorientation
D mentorship

Answers

Answer: new hire orientation

Explanation:

New employee orientation is used in order to welcome newly employed workers to the organization and this is done in order to integrate the new workers into the system, train them, and make them feel welcomed and part of the organization. .

This helps to boost the confidence of the employees, leads to increase in the retention of employees and also boost employees morale.

Interaction orientation simply means the interaction that takes place between companies and their customers and this is done in order to improve the relationship with customers and achieve organizational goals.

Mentorship simply means having a mentor to guide an individual. Reorientation simply means to change a particular focus or mindset of certain people.

Based on the explanation, the answer is new hire orientation.

Answer:

A

Explanation:

Does anyone know what the definition of expanding manufacturing is?

Answers

Definition - To make your business grown larger or faster by diversifying your current product line

Hope this help :)

What is the advantage of developing criteria for assessing the effectiveness of business products and processes?
A. Assessment criteria are answers.
B. Assessment criteria are inexpensive.
C. Assessment criteria provide you with a list of relevant things to measure.
D. Assessment criteria provide you with a list of people to contact to learn more about process mentoring.

Answers

Answer:

.Assessment criteria provide you with a list of relevant things to measure.

Explanation:

Assessment criteria provides a list by which one can measure success or failure of a business products and processes.

Answer:

c

Explanation:

Mary is earning a weekly salary of $521.60 as a payroll clerk. She has accepted a new assignment in the tax-processing department. In her new position, she will be paid an annual salary of $30,534.00. How much more would she earn per week in her new position?

Answers

Answer:

$65.60

Explanation:

Mary's current is $521.60.

In her new position, she will be earning $30,534.00.  Her new weekly income will be as follows. Assuming one year has 52 weeks.

New pay = $30,534.00/ 52

New pay =587.20

In her new job, she will earn more by( $587.20 - $521.60.) =$65.60

=$65.60

Select the best alternative for the following questions:
i. Which of the following transactions are not recorded in book keeping?
a) Sold Goods on Credit.
b)
Introduce capital in the business.
c) Resignation of marketing manager.
d) Drawing cash from business for personal use.
..​

Answers

Answer:

c. the resignation

Explanation:

this would not affect the bottom line of the company and is therefore irrelevant

The correct answer is c

The Break-Even Point in your business is when


your company has repaid all of its debt

your company has exceeded its start up expectations

your company makes enough in revenue regularly to cover its expenses

your company repays all of the start up cost funding

Answers

Answer: In this letter you want to make sure that you are being clear and concise, so as to avoid any confusion about what your relationship will be in the future (ended). This means that you want to avoid any potential legal liability, and explain yourself in order to show that you are being fair and reasonable in your request.

Explanation:

Which of the following is not one of the factors in determining a pension's final value?

A) Years of serivce
B) Level of education
C) Your age at retirement
D) Your highest salary/pay

Answers

Answer:

B

Explanation:

Match the financial statement with its description. To match them, click the Description and then click the Financial Report Name

Answers

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

Notes to financial statements: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.

The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.

Report of independent registered public accounting firm: Attests to the fairness of the presentation of the financial statements.

is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

Management's discussion and analysis of financial condition and results of operations (MD&A): Is written by the company to help investors understand the results of operations and the financial condition of the company.

Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

Financial statements: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.

are reports prepared by a company's management to present the financial performance and position at a point in time.

Financial statements refer to how company communicates their finance. The financial statement that reflects a company’s profitability is hereby given below.

Financial statements in sheets

The various accounting activities that precedes financial statements are hereby matched below:

A. Statement of retained earnings or owner's equity

Include information of owner's retained earnings and dividends.

B. Income statement - Revenues

Shows revenues and expenses over a period of time.

C. Statement of cash flow

shows money moving in and out, categorized by operations, investing and finance

D. Balance Sheet

A snapshot of a company's assets, liabilities and equity at a specific moment in time.

Therefore, the answers are Statement of retained earnings or owner's equity, Income statement - Revenues, Statement of cash flow, Balance Sheet respectively.

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Your factory has a contract to produce a new folding chair. Your role as manager is to find the greatest efficiencies possible throughout the process, so you call a meeting with your planning department. One of your engineers suggests putting more workers on the line but breaking up the tasks into more individual steps. What is your greatest concern regarding this approach? A increased time spent in training B reduced production C poor conditions for workers D cost to hire skilled workers

Answers

Answer:

A

Explanation:

I took the test and it was right

When a site is unsafe, it means a. Your personal information may be used in ways you do not want c. Permission to use that site at school is always allowed b. That site is okay to visit often d. All of the above Please select the best answer from the choices provided A B C D

Answers

Answer:A, Your personal information may be used in ways you do not want

Explanation:

If it is a unsafe site than there for your personal information can go places you do not want them to.

When a site is unsafe, it means your personal information may be used in ways you do not want. Thus, option 'A' is the correct option.

What does it mean when a website is unsafe?

External connections to websites with phishing, malware, or unwanted software are known as unsafe domains. Phishing is when a website imitates another one in an effort to fool visitors into divulging personal or financial information. When you visit an insecure website, you run the risk of having your personal information compromised and/or having malicious malware installed on your system.

Additionally, you can fall prey to a phishing attack, or someone else might watch your activity or use your resources for their own gain. If the content you're seeking to view is harmful or misleading, a warning will appear. These websites are frequently referred to as phishing or virus sites. If you clicked on a phishing link, the first thing you should do is immediately unplug your device from the internet.

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Which of the following should which of the following should be of concern when a company considers expanding into a new International market?
the country's legal system
the country's political stability
the education level of the workforce
all of the above

Answers

I think it might be (all of the above)

when did Toronto​ pearson​Airport​(Canada) start​ using​ technology​ or​ scanner​

Answers

Answer:

Canada's busiest airport will soon start to use artificial intelligence- powered technology to detect weapons. The technology can detect both metallic and non-metallic weapons ranging from  guns and knives to explosives, according to Liberty Defense Holdings Ltd., a  Vancouver-based company which first marketed the technology.  Known as Hex wave, the technology works by capturing radar images, then using  artificial intelligence to analyze them for concealed weapons in bags or under clothing.   Liberty's CEO, Bill Riker explained, "radar essentially is emitting this form of energy,  it's reflecting off a person and it's identifying any items on a person's body that don't  belong on a body." The technology will start getting deployed at Pearson in the Spring of 2020 in a bid to boost  security, according to the Greater Toronto Airports Authority, which runs Pearson.

WILL GIVE BRAINLIEST
If loans and credit card debt are taking up most of your monthly income, which of the following is the LEAST effective first step in getting your debt under control?
A. Start a side hustle and allocate the money you make towards extra payments for your debt.

B. Take a hard look at your budget and try to cut nonessential items so you have more cash to pay down your debt.

C. Declare bankruptcy, which will eliminate all your debts and allow you to start over with a clean slate.

D. Pay extra money each month to the debt with the highest interest rate, so you'll decrease the total amount you'll spend on debt.

Answers

Answer:

a or c i fliped a coin and got A sounds like the answer rember jesus loves you

Explanation:

1. Calculate the Net Worth when Liabilities are $5,000 and Assets are $6,725​

Answers

The answer is 567.879 percent

4.
Contrast the relationship that exists between entrepreneurs and investors in a business
enterprise.​

Answers

Answer:

see below

Explanation:

1. An entrepreneur is the business founder. He or she conceives the business ideas and focuses on growing it.  An investor considers existing business formed by the entrepreneur and focuses on its financial/commercial side.

2. The entrepreneur approaches an investor to finance the business. He draws a business plan and proposals to assure the investor of its viability. The investor approaches an entrepreneur if he is convinced of profits.

3. The entrepreneur manages the business but may also invest in it.  An investor only puts money in the business but is not involved in managing it.

Research some examples of organizations that experienced bad publicity and how they dealt with it. Write a paper detailing your findings.

Answers

Answer:

did you finish it cuase i got the same one

Explanation:

Admit the error, apologize, and present a solution if you or your company is receiving negative press as a result of anything you did incorrectly. Negative publicity won't disappear if you ignore it.

What do you mean by Negative publicity?

When damaging material is revealed, negative PR or publicity can take many different forms in company and can impact everything from sales to your reputation.

Various forms of unfavorable PR for your company could include: negative coverage of your business in the media, online, in publications, or on television.

In particular, we contend that by raising product awareness, unfavorable publicity might boost sales and purchase likelihood.

Negative publicity should therefore affect products differently depending on whether they are recognized or unknown. This viewpoint is supported by three investigations.

Your brand's reputation can be severely damaged in a matter of minutes by false information, negative reviews, and nasty social media remarks. Even worse, rumors spread swiftly and negatively impact the reputation of your company.

Negative publicity can have a significant impact on how potential customers see your brand. When customers publicly disparage a company, product, or service, this is known as bad publicity.

Bad publicity includes posting or publishing negative evaluations on websites, review pages, and social media accounts.

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A Balance Sheet does NOT show your company's (two answers are correct)


financial position over a specific period of time

liabilities

insurance coverage at a specific date in time

assets

Answers

Answer:

I think its the 1st and 3rd ones

Explanation:

Jerry's job requires that he wear a suit and tie every day to the office. This is most likely a(n) _____ atmosphere.

Answers

Answer:

I would say a formal or business atmosphere.

Explanation:

The main jobs that require suits are often business atmospheres. However, the wearing of a suit is called formal attire.

Answer:

The answer is formal

Explanation:

I took the quiz and got all of the answers right.

Sam has take-home pay every month of $800. He anticipates that his expenses will add up to $675 for the month. In a zero-based budget, why is it important that she put the extra $125 in SOME budget category? Where might you suggest that Sam put the extra $125?

Answers

Answer:

Second savings account

Explanation:

Life is full of surprises... repairs or emergency cases this would be helpful to have

Answer:

In a zero based budget, your income needs to add up to zero at the end of every month. For that reason I recommend that if he still has money left over after paying bills and other expenses he should put in savings.

waht do an engineer and an architect do?​

Answers

Create fix, build stuff, and many other things use google you’ll find more info on it too
An engineer builds products and buildings while architects plan out the way the engineers will build for a stable, working build.

In which way are competitors stakeholders in a business?
A. They invest in competition
B. Competitors need to provide services
C. Competitors will want to position itself competitively
D. They enjoy learning about the competition

Answers

Answer:

B

Explanation:

l think so if u get it wrong and am sorry

What type of industry would Tim Hortons and McDonalds be classified as?

Answers

they would be classified as restaurants

MULTIPLE CHOICE: Scar stole Mufasa's debit card and used it to buy a vacation package to the Savannah. Which account would the money come out of? (choices are savings, checking, certificate of deposit, and online checking)

Answers

Answer:

Savings.

It cannot come from certificate of deposit or online checking, since it is a debit card.

What percent of the federal budget was spent on education in 2019?

Answers

Answer:

The President requests $59.9 billion in discretionary appropriations for the Department of Education in fiscal year 2019, an $8 billion or 12 percent reduction below the 2018 annualized Continuing Resolution (CR) level.

Should voting be mandatory?

Answers

Answer: Yes

Explanation:

Answer:

no

Explanation:

because no

What is the difference between a salary and an hourly wage?​

Answers

Answer:

Explanation:

A salary stays the same amount no matter how many hours you work. An hourly wage, you get paid for each hour you work; you get payed on WHAT you work.

Which of the following best describes a stock.

A) An incredibly stable investment that is always a safe investment
B) Is insured by the FDIC
C) Represents a share of ownership of a corporation
D) Only sold in the United States

Answers

Answer: C

Explanation: A stock represents a share of ownership of a corporation. Stocks are bought by people so they can get money. If the company's stock they by it from goes well, they get money as well as interest. The answer is C. Hope this helps!

What are the 4 steps to branding

Answers

Answer:

Here are four steps to building a successful brand.

1 Define how you want to be perceived. When your customers have finished using your product or service, how do you want them to describe their experience? ...

2 Organize your business based on this promise. ...

3 Communicate your promise. ...

4 Be consistent.

Explanation:

A local Barnes and Noble paid a $79.99 net price for each hardbound atlas. The publisher offered a 20% trade discount. What was the publisher’s list price?

Answers

Answer:

i believe it would be 63.99

Explanation:

Based on the information given the publisher’s list price is:$99.99.

Using this formula

List price=Net price/(100%-2=Trade discount)

Where:

Net price=$79.99

Trade discount=20%

Let plug in the formula

List price=$79.99/(100%-20%)

List price =$79.99/80%

List price= $99.99

Inconclusion the publisher’s list price is:$99.99.

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I need to submit this today, can you help me?


What are Washington D.C.’s people eating habits?

What are some economic facts about Washington DC?

What are some facts about Washington DC?

Culture and customs of Washington DC?

Travel information (Dubai to Washington DC)?

Answers

Answer:

I'm sure they eat well. have u try looking it up on goggle first

Other Questions
describe an example in history where a key assumptionscheck could have possibly eliminated a tragic outcome Please I need some assistance? #1 and #21 : What has the impact been with US - China trade agreement?2 : In what ways did the US energy policy impact low middleclass families ? If imports are greater than exports, which of the following is true?O Trade balance is positive resulting in a deficitO Trade balance is negative resulting in a deficitO Trade balance is positive resulting in a surplusO Trade balance is negative resulting in a surplus Evaluate the three mutual funds using Sharpe and Treynor measure. Given the risk-free rate is 5%. Financial Assets Fund A Fund B Fund C Market Portfolio (FTSE KLCI) a) b) Average Return ii) 22% 10% 17 Use epitome in a sentence For 2018. Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $65,250. Meg works part-time at the same university. She earns $31,550 a year. The couple does not itemize deductions. Other than salary, the Comers? only other source of income is from the disposition of various capital assets (mostly stocks).(a) What is the Comers? tax liability for 2018 if they report the following capital gains and losses for the year?Short-term capital gains9,110Short-term capital losses(2,110)Long-term capital gains15,210Long-term capital losses(6,210)Total tax liability for 2018_____(b) What is the Comers? tax liability for 2018 if they report the following capital gains and losses for the year?Short-term capital gains1,500Short-term capital losses0Long-term capital gains13,220Total tax liability for 2018_____Long-term capital losses(10,110) Determine the amount of the child tax credit in each of the following cases:a. A single parent with modified AGI of $215,100 and one child age 4 : Child Tax Credit Allowed ________b. A single parent with modified AGI of $79,700 and three children ages 7,9 , and 12 . : Child Tax Credit Allowed ________c. A married couple, filing jointly, with modified AGI of $409,633 and two children age 14 and 16.: Child Tax Credit Allowed ________d. A married couple, filing jointly, with modified AGI of $133,755 and one child, age 13. : Child Tax Credit Allowed ________ All of the following are measures of central tendency except the ________.Select one:A. None of the answers are correctB. modeC. rangeD. meanE. median The Gemini North Observatory is located on Mauna Kea, Hawaii, at an altitude of 4213 m. The high altitude and the steady atmosphere in the middle of the Pacific Ocean make Mauna Kea one of Earths best locations for telescopes. Observing with the Gemini North telescope on very calm nights the blurred stellar images have an angular size of about 0 .2. On one of these outstanding nights, how does the parallactic angle, ( ), of the star Aquilae compare with its atmospherically blurred size? What would the parallactic angle be? 1. Do these thin sections of the same rock represent a Kimberlite or eclogite? (Region: Kimberly, South Africa.)2. What mineral phases are present?3. What is the possible origin and formation of this rock? Does anybody know this? 1/2 divided by 4/7 Mansour reads in Mutab News the following quote "Over the past four years, Saudi Arabia has witnessed a strong phenomenon in the spread of "food trucks", which are mobile food in all regions and cities of Saudi Arabia". Mansour wants to start his food truck business, however, his classmate Abdallah advised her to put it in a saving account or invest in a certificate deposit. Can you evaluate both arguments and help Mansoor to make the optimal decision? which organ system is made up of several glands that act in the regulation of metabolism, reproduction, water balance, and many other functions? Main Activity 4: Progressive vs. Regressive Tax Directions: With your group, answer the questions about each scenario. Then, decide which scenario represents a progressive tax and which scenario represents a regressive tax. Scenario 1: Progressive or Regressive? - Assume the federal income tax is 10% on the first $40,000 earned, 20% on the next $40,000 earned, and 25% on the next 40,000 earned. - Kevin earns \$30,000 - Angela earns $75,000 - Oscar earns \$110,000 Questions 1. How much does each person pay in income tax? a. Kevin: b. Angela: c. Oscar: 2. What is the effective tax rate for each person? a. Kevin: b. Angela: c. Oscar: What is the first term of the arithmetic sequence ___,___,____,41,346,19,919? 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