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Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $ 1 2 . 1

Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $12.10 per hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerai travel time. The owner's daughter suggested answering this question by designing an activity-based costing system using the information shown below:
Activity Cost Popl
Cleaning carpets
Travel: to jobs
Job supporis
other (organteattion-sustaining costs and Hote captes (costs)
Activity Measure
Square feet cteaned (00s)
Miles driven
Number of jobs
Wone
Activity for the Year
9,500 hundred square feet
262,500 miles
2,790 jobs
Not applicable
The total cost of operating the company for the year is $360,000 which includes the following costs:
Wages
ctearing supplies
cleaning equipment depreciation
Venicile expenses
orfice expenses
Presidentis compensation
Tota 1 cost
$145,000
20.00
1.,008
3.6.00
64.300
81.000
(5)369.000
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.
Required:
Prepare the first-stage allocation of costs to the activity cost poots.
Compute the activity rates for the activity cost poois.
The company recenty completed a 200-square-foot carpet-cleaning job at the Flying N Ranch-a 60-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 $24.20(200 square feet $$12.10 per hundred square feet). Calculate the customer margin earned on this job.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the activity rates far the activity cost pools.
Note: Round your answers to 2 decima places.
\table[[Activity Cost Poc,,Ael,Hivity Rate],[Cleaning carpets,s,,per hndred squara],[Travel to jobs,$,0.150,per mile],[Job support,$,,perjob.]]
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