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 $23.35 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 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 foot cleaned (008) 9,500 hundred square feet Travel to jobs Miles driven 445, 500 miles Job support Number of jobs 1,800 jobs other organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $361,000 which includes the following costs: Wages Cleaning supplies cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 140,000 31,000 16,000 37,000 61,000 76.000 $361.000 Resource consumption is distributed across the activities as follows: Distribution of resource Consumption horono Xotivation cleaning Travel Carpet to Jobs Wagen 791 111 Cleaning supplies 1000 00 Cleaning equipment depreciation 698 08 Vehicle expenses ottice expenses ou President's compensation 00 Job Support os 00 os 08 570 276 Other 20 00 310 201 431 731 os Total 1001 1001 1001 1001 1000 1000 B01 os ON Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 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 800 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 $186.80 (800 square feet $23.35 per hundred square feet). Calculate the customer margin earned on this job