Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$12\mathrm{.}85$ per

hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerable

travel time. The owner's daughter suggested answering this question by designing an activity$-$based costing system using the

information shown below:

The total cost of operating the company for the year is $$362,000$ which includes the following costs:

She distributed these operating costs across her four activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so

on$.$ Prepare the first$-$stage allocation of costs to the activity cost pools.

Compute the activity rates for the activity cost pools.

The company recently completed a $200-$square$-$foot carpet$-$cleaning job at the Flying N Ranch$$a $55-$mile round$-$trip from the company$$s home office. Compute the cost of this job using the activity$-$based costing system.

The revenue from the Flying N Ranch was $$25\mathrm{.}70(200$ square feet @ $$12\mathrm{.}85$ per hundred square feet$).$ Calculate the customer margin earned on this job.