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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 3 . 9

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 operating the company for the year is $365,000 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 so
on.
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 completed a 200-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.
The revenue from the Flying N Ranch was $27.90(200 square feet @$13.95 per hundred square feet). Calculate the customer
margin earned on this job.
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