Posted: May 3rd, 2016

What is the company operating cost?

activity cost pool activity measure activity for the year
cleaning carpets sq ft cleaned (00s) 20,000 hundred square feet
traveling to jobs miles driven 60,000 miles
job support number of jobs 2,000 jobs
other (costs of idle capacity and organization sustaining costs)

The total cost of operating the company for the year is $430,000, which includes the following costs:
wages $150,000.00
cleaning supplies $40,000.00
cleaning equipment depreciation $2,000.00
vehicle expense $80,000.00
office expense $60,000.00
president compensation $80,000.00
total $412,000.00

Resource consumption is distributed across the activities as follows:
Cleaning carpet travel to jobs job support other total
wages 70% 20% 0% 10% 100%
cleaning supplies 100% 0% 0% 0% 100%
cleaning equipment depreciation 80% 0% 0% 20% 100%
vehicle expense 0% 60% 0% 40% 100%
office expense 0% 0% 45% 55% 100%
president compensation 0% 0% 40% 60% 100%