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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 $23.65 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 their activity measures appear below:
The total cost of operating the company for the year is $357,000 which includes the following costs:
Resource consumption is distributed across the 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 58-mile round-trip journey from
the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system.
The revenue from the Flying N Ranch was $141.90(600 square feet @$23.65 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.
Required:
1- table is given
2)
Activity cost pool activity rate
cleaning carpets ________ per hundred sq feet
travel to jobs __________per mile
Job support ________per job
3)The company recently completed a 600 square foot carpet-cleaning job at the Flying N Rancha 58-mile round-trip journey from the companys offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)
Cost of job =_______
4)The revenue from the Flying N Ranch was $141.90(600 square feet @ $23.65 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)
Customer margin=________
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