Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $13.95 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 opeding the company for the year is $334,000 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 s 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 52-mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $55.80 ( 400 square feet @ $13.95 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The company recently completed a 400 -square-foot carpet-cleaning job at the Flying N Ranch-a 52 -mile round-trip from the company's home office, Compute the cost of this job using the activity-based costing system. Note: Round your intermediate calculations and final answer to 2 decimal places. Job support consists of recelving 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 52 -mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $55.80 ( 400 square feet @ $13.95 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cost pools. Note: Round your answers to 2 decimal places. 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 52 -mile round-trip from the company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $55.80 ( 400 square feet @$13.95 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $55.80 ( 4 square feet $13.95 per hundred square feet). Calculate the customer margin earned on this job. Note: Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places
