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 $23.00 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. nts Skipped eBook Print eferences Activity Cost Pool Activity Measure Cleaning carpets Activity for the Year Travel to jobs Square feet cleaned (008) 11,000 hundred square feet Miles driven Job support 429,000 miles Number of jobs other organization-sustaining costs and 1,600 jobs idle capacity costs) None Not applicable The total cost of operating the company for the year is $336,000 which includes the following costs: Wages Cleaning supplies $ 141,000 27,000 Cleaning equipment depreciation 6,000 Vehicle expenses office expenses 34,000 56,000 President's compensation 72,000 Total cost $36.000 Resource consumption is distributed across the activities as follows: Distribution of resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Othe Wages Total 711 135 00 160 Cleaning supplies 1000 1000 ON 00 00 Cleaning equipment depreciation 666 01 ON Vehicle expenses 34 1000 00 774 office expenses 231 1000 os 631 378 President's compensation 1000 ou 01 304 705 1000 Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving issues, and so on 1000 01 08 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 400 square foot carpet-cleaning Job at the Flying N Ranch-a 57 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 $92.00 (400 square feet o $23.00 per hundred square feet). Calculate the customer margin earned on this job. C aw Il Prey 1 of 1 : Next LUDny equipment special ou ODS US US 39 LUUS Vehicle expenses 04 778 08 238 1000 Office expenses 03 08 638 378 1000 President's compensation 08 08 308 701 1008 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issu on. 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 400 square foot carpet-cleaning Job at the Flying N Ranch-a 57-mile round-trip jou 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 $92.00 (400 square feet a $23.00 per hundred square feet). Calculate the ci margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Job Support Other Total Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Jobs Carpets Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Prev 1 of 1 Next Resource consumpuon is distributed actOSS e acuviues as TOHOWS. Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Wages 711 136 Cleaning supplies 1008 ON Cleaning equipment depreciation 666 08 Vehicle expenses 08 774 office expenses ON President's compensation 09 08 ON Job Support 08 Other 161 00 341 08 08 634 Total 1000 1000 1001 1008 100% 1009 230 301 374 708 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 57-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 $92.00 (400 square feet a $23.00 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 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs per mile Job support per job Prev 1 of 1 !!! Next Total cost $ 336,000 Resource consumption is distributed across the activities as follows: ped Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Joba Wages 710 131 Cleaning supplies 1001 01 Cleaning equipment depreciation 666 09 Vehicle expenses ON office expenses ON President's compensation 00 ON 00 Job Support os 08 00 ON 638 JO Other 168 08 340 239 371 704 Total 1008 1001 1000 1000 1000 1008 bok Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. nt 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 400 square foot carpet cleaning Job at the Flying N Ranch-57-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 $92.00 (400 square feet o $23.00 per hundred square feet). Calculate the customer margin earned on this job. nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch-a 57-mile round-trip Journey from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places) Cost of the job Total cost 5 336,000 Resource consumption is distributed across the activities as follows: 710 Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Other Total Wages 138 08 161 1000 Cleaning supplies 1001 ON 01 09 1000 cleaning equipment depreciation 08 ou 340 1000 Vehicle expenses ON ou 230 office expenses 00 00 378 1000 President's compensation ON OR 300 700 1000 Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving issues, and so on. 1001 631 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 57-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 $92.00 (400 square feet o $23.00 per hundred square feet). Calculate the customer margin earned on this job es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $92.00 (4 hundred square feet @ $23.00 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Customer margin