Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $13.60 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:

Activity Cost Pool	Activity Measure	Activity for the Year
Cleaning carpets	Square feet cleaned (00s)	8,000	hundred square feet
Travel to jobs	Miles driven	103,000	miles
Job support	Number of jobs	2,500	jobs
Other (organization-sustaining costs and idle capacity costs)	None	Not applicable

The total cost of operating the company for the year is $361,000 which includes the following costs:

Wages	$ 146,000
Cleaning supplies	24,000
Cleaning equipment depreciation	19,000
Vehicle expenses	33,000
Office expenses	67,000
Presidents compensation	72,000
Total cost	$ 361,000

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

Distribution of Resource Consumption Across Activities
	Cleaning Carpets	Travel to Jobs	Job Support	Other	Total
Wages	71%	11%	0%	18%	100%
Cleaning supplies	100%	0%	0%	0%	100%
Cleaning equipment depreciation	64%	0%	0%	36%	100%
Vehicle expenses	0%	85%	0%	15%	100%
Office expenses	0%	0%	55%	45%	100%
Presidents compensation	0%	0%	32%	68%	100%

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 Rancha 53-mile round-trip from the companys home office. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $54.40 (400 square feet @ $13.60 per hundred square feet). Calculate the customer margin earned on this job.