1 Gallotin 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 $22.50 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 (008) 8,500 hundred square feet Travel to jobs Miles driven 412,000 miles Job support Number of jobs 1,700 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $360,000 which includes the following costs: Wages cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 149,000 26,000 16,000 33,000 58,000 78,000 $360,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 808 145 cleaning supplies 1000 05 Cleaning equipment depreciation 728 08 Job Support 08 08 08 other 68 05 280 Total 1008 1008 1000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Joba Mages 800 140 Cleaning supplies 1000 00 Cleaning equipment depreciation 00 Vehicle expenses 05 810 office expenses 00 00 President's compensation 00 00 Job Support OB ON 00 00 641 320 Other 68 00 281 720 Total 1000 1000 1008 1005 1000 1001 196 368 688 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 59-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 $90.00 (400 square feet o $22.50 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 Prepare the first stage allocation of costs to the activity cost pools. Cleaning Travel to Job Suport Other Total Mc GE