1 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 $23.35 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, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (05) 7.500 hundred square feet Travel to jobs Miles driven 363,000 miles Job support Number of jobs 1,900 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable eBook The total cost of operating the company for the year is $341,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 143,000 24,080 14,000 26,000 58,000 76,000 $ 341,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Wages 758 104 es Cleaning Supplies 1001 es e Cleaning equipment depreciation 734 es 09 Vehicle expenses 09 B0 OS Office expenses es es 624 President's compensation OS 275 Other 159 04 274 201 389 73 Total 100 1004 lees 100 1000 100 Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools 3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 51-mile round-trip journey from the company's offices in Bozeman Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $140.10 (600 square feet @ $23.35 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Total Prepare the first stage allocation of costs to the activity cost pools. Cleaning Travel to Job Sup Other Carpets Jobs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 d Activity Cost Pool Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet per mile per job Prev 1 of 4 Next > Required 1 Required 2 Required 3 Requred 4 The revenue from the Flying N Ranch was $140.10 (6 hundred square feet @ $23.35 per hun customer margin earned on this job. (Negative customer margins should be indicated with a intermediate calculations and final answers to 2 decimal places.) Customer margin