Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$13\mathrm{.}00$ 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 $$360,000$ which includes the following costs:

She distributed the 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

Required:

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

Compute the activity rates for the activity cost pools.

The company recently completeofa $400-$square$-$foot carpet$-$cleaning job at the Flying N Ranch$-$a $56-$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 $$52\mathrm{.}00(400$ square feet @$$13\mathrm{.}00$ per hundred square feet$).$ Calculate the customer

margin earned on this job.

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