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\mathrm{.}40$ 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:

$\backslash$table$[[$Activity Cost Pool,Activity Measure,$],[$Cleaning carpets,Square feet cleaned $(00$s$),$Activity for the Year$],[$Travel to jobs,Miles driven,$8,000$ hundred square feet$],[$Job support,Number of jobs,$407,500$ miles$],[$Other $($organization$-$sustaining costs and,$1,900$ jobs,$],[$idle capacity costs$),$None,Not applicable$]]$

The total cost of operating the company for the year is $$350,000$ which includes the following costs:

$\backslash$table$[[$Wages$,],[$Cleaning supplies,$147,000],[$Cleaning equipment depreciation,$32,000],[$Vehicle expenses,$10,000],[$Office expenses,$31,000],[$President$\text{'}$s compensation,$55,000],[$Total cost$,75,000]]$

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 $53-$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 $$140\mathrm{.}40(600$ square feet @$$23\mathrm{.}40$ per hundred square feet$).$ Calculate the customer margin earned on this job.