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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 fee

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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 fee per hundred square feet of carpet cleaned. The current fee is $22.95 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: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets square feet cleaned (0) 10,000 hundred square feet Travel to jobs Miles driven 302, miles Job support Number of jobs 1,910 Jobs Other (organization-sustaining costs and Idle capacity costs) None Not applicable The total cost of operating the company for the year is $350,000 which includes the following costs! 5 Hages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost 138,000 21.000 20,000 33.000 58,000 30,000 | 350,000 $ Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activities Cleaning Travel Carpets to Jobs wages 72 141 Cleaning supplies 100 Cleaning equipment depreciation 733 03 Vehicle expenses ex office expenses Os President's compensation ON Job Support ON OR ON 03 615 345 ***** Other 145 OX 27% 195 39% 60% Total 100% 100% 100X 100% TOK 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on 3 ME Urtice expenses President's compensation 618 345 391 668 2 TO Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on 10 Dons 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 56 mile round-trip journey from the company's offices in Bozeman Compute the cost of this job using the activity based costing system 4. The revenue from the Flying N Ranch was $13770 (600 square feet @ $22.95 per hundred square feet), Calculate the customer margineamed on this job. ebook Print Complete this question by entering your answers in the tabs below. References Required Required 2 Required 3 Required 4 Prepare the first stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Hob Support Other Total $ 0 0 0 0 Wages Cleaning supplies Cleaning equipment apreciation Vehicle openses Office expenses President's compensation Total cost 0 0 OS 15 0 05 0 $ Required 2 > Urice expenses President's compensation 0% ex 61% 34% 397 66% 100 100% eBook Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving iss on Print References 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 56-mile round tripjo the company's offices in Bozeman Compute the cost of this job using the activity-based costing system 4. The revenue from the Flying N Ranch was S13770 (600 square feet @ $22.95 per hundred square feet). Calculate the margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch-a 56-mile round-trip journey from the company's 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.) Cast of the job 397 DOA Book Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Print eferences 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 56-mile round-trip Journey from the company's offices in Bozeman Compute the cost of this job using the activity-based costing system 4. The revenue from the Flying N Ranch was $13770 (600 square feet @ $22.95 per hundred square feet). Calculate the customer margin earned on this job Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $137.70 (6 hundred square feet $22.95 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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