Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $12.30 per hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerable travel time. The owners daughter suggested answering this question by designing an activity-based costing system using the information shown below:

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

1. Compute the activity rates for the activity cost pools.
2. The company recently completed a 600-square-foot carpet-cleaning job at the Flying N Rancha 57-mile round-trip from the companys home office. Compute the cost of this job using the activity-based costing system.
3. The revenue from the Flying N Ranch was $73.80 (600 square feet @ $12.30 per hundred square feet). Calculate the customer margin earned on this job.

The total cost of operating the company for the year is $353,000 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 sc on