Galatin Carpet Cleaning s a small family owned business operating out of Bozeman, Montana Fors services, the company has always charged a flat for per hundred square foot of carpet cleaned. The current fois 523 95 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 Measure Activity for the Year Cleaning carpets Square feet cleaned 100) 3 500 und square feet Travel to be Miles driven 70.000 miles Job uport Number of 2.000 Other organization austining costs and die capacity costs None Not applicable The total cont of operating the company to the year is $356,000 which includes the following costs: Wages $136.000 Cleaning supplies 26.000 Cleaning equipment depreciation 20 000 Vehicle expenses 35.000 Office expenses 67.000 President's compensation 78.000 Total cost 3.360.000 Resource consumption is distributed across the activities as follows Distribution of Resource Consumption Across Act Cleaning Travel to Carpet Jobs Job Support Other Total Wages 72% 11% 0% 17 100% Cleaning supplies 100% 0% 0 100% Cleaning Guiment depreciation 60 0% 31% 100% Vehicle expenses 0% 04 18% 100% Office expenses os 0 SA 100% President's compensation 0% 09 285 72 100% Job support consists of receiving calls from potential customers at the home officheduling jobs, biling, resolving ses, and so on Required: 1. Prepare the first stage allocation of costs to the activity coul 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 56mle round-trip journey from the company's offices in Bozeman Compute the cost of this job using the activity based costing system The revenue from the Flying N Ranch was $95.80 (400 square foot @ $23.95 per hundred square foot). Calcule the customer margineamed on this job O Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Frequired 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 por job 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 56-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 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 $95.80 (4 hundred square feet @ $23.95 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
