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Gallatin Carpet Cleaning is a small, family - owned business operating out of Bozeman, Montana. For Its services, the company has always charged a flat

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For Its services, the company has
always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.85 per hundred square feet. However,
there is some question about whether the company is actually making any money on jobs for some customers-particularly those
located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has
suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of
four activity cost pools. The activity cost pools and thelr actlvity measures appear below:
The total cost of operating the company for the year is $353,000 which includes the following costs:
Resource consumption is distributed across the activities as follows:
Job support consists of recelving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so
on.
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 800 square foot carpet-cleaning job at the Flying N Rancha 51-mile round-trip journey from the companys offices in Bozeman. Compute the cost of this job using the activity-based costing system.
The revenue from the Flying N Ranch was $190.80(800 square feet @ $23.85 per hundred square feet). Calculate the customer margin earned on this job. Prepare the first-stage allocation of costs to the activity cost pools.
\table[[,\table[[Cleaning],[Carpets]],Travel to Jobs,Job Support,Other,Total],[Wages,,,,,],[Cleaning supplies,,,,,],[Cleaning equipment depreciation,,,,,],[Vehicle expenses,,,,,],[Office expenses,,,,,],[President's compensation,,,,,],[Total cost,,,,,]] Compute the activity rates for the activity cost pools.
Note: Round your answers to 2 decimal places. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch-a 51-mile round-trip journey
from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system.
Note: Round your intermediate calculations and final answer to 2 decimal places.
Cost of the jobThe revenue from the Flying N Ranch was $190.80(800 square feet @$23.85 per hundred square feet). Calculate the
customer margin earned on this job.
Note: Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final
answers to 2 decimal places.
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Customer margin
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