Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $12.55 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 $352,000 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: 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 600 -square-foot carpet-cleaning job at the Flying N Ranch-a 53-mile round-trip from the company's home office. Compute the cost of this iob usina the activitv-based costina svstem. 4. The revenue from the Flying N Ranch was $75.30 ( 600 square feet $12.55 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Prepare the first-stage allocation of costs to the activity cost pools. \begin{tabular}{|l|l|} \hline Activity Cost Pool & \multicolumn{2}{|c|}{ Activity Rate } \\ \hline Cleaning carpets & per hundred square feet \\ \hline Travel to jobs & per mile \\ \hline Job support & per job \\ \hline \end{tabular} company's home office. Compute the cost of this job using the Note: Round your intermediate calculations and final answer to Required 3 Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $12.55 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 $352,000 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: 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 600 -square-foot carpet-cleaning job at the Flying N Ranch-a 53-mile round-trip from the company's home office. Compute the cost of this iob usina the activitv-based costina svstem. 4. The revenue from the Flying N Ranch was $75.30 ( 600 square feet $12.55 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Prepare the first-stage allocation of costs to the activity cost pools. \begin{tabular}{|l|l|} \hline Activity Cost Pool & \multicolumn{2}{|c|}{ Activity Rate } \\ \hline Cleaning carpets & per hundred square feet \\ \hline Travel to jobs & per mile \\ \hline Job support & per job \\ \hline \end{tabular} company's home office. Compute the cost of this job using the Note: Round your intermediate calculations and final answer to Required 3
