Gallatin Carpet Cleaning is a small, family$-$owned business operating out of Bozemon, Montana. For its services, the company has

alwsys charged oflat fee per hundred square feet of carpet cleaned. The current fee is $$22\mathrm{.}35$ 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

locoted on remote ronches that require consideroble trovel time. The owner's doughter, home for the summer from college, has

suggested investigating this question using activity$-$bosed costing. After some discussion, she designed s simple system consisting of

four activity cost pools. The activity cost pools and their activity messures appear below:

The totol cost of operating the company for the year is $$347,000$ which includes the following costs:

Resource consumption is distributed across the activities os follows:

Job support consists of receiving calls from potentisl customers at the home office, scheduling jobs, billing, resolving issues, and so

on$.$

Required:

Prepore 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 $400$ square foot carpet$-$clesning job at the Flying $N$ Ranch$-$a $54-$mile round$-$trip journey from

the compony's offices in Bozeman. Compute the cost of this job using the octivity$-$bosed costing system.

The revenue from the Flying $N$ Ranch was $$89\mathrm{.}40(400$ square feet @$$22\mathrm{.}35$ per hundred square feet$).$ Colculate 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.