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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

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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 $22.15 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 Cleaning carpets Activity for the Year Travel to jobs Square feet cleaned (05) 12,000 hundred square feet Miles driven Job support 343,000 miles Number of jobs 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 $373,000 which includes the following costs: Wages $ 148,000 Cleaning supplies 32,000 Cleaning equipment depreciation Vehicle expenses 10,000 Office expenses 39,000 70,000 President's compensation 74,000 Total cost $ 373,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Wages Carpeta Joba Support Other Total Cleaning supplies 791 08 100 1000 1000 00 05 08 Cleaning equipment depreciation 1008 710 08 Vehicle expenses 04 294 1004 01 761 office expenses 0 24 1000 os ON President's compensation 550 450 100 os ON 298 710 1000 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so 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 of the Flying N Ranch-a 55-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 $132.90 (500 square feet a $2215 per hundred square feet). Calculate the customer margin earned on this job. 110 on Complete this question by entering your answers in the tabs below. Prey 1 of 6 NAV RESOUILE Consumpon is ismuleu Liu CLIVILES TOUWS. 08 Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Wages Other Total 798 11% 08 Cleaning supplies 105 1001 1009 08 08 Cleaning equipment depreciation 1000 719 08 08 Vehicle expenses 298 100% office expenses 761 08 240 1008 09 08 President's compensation 558 458 1008 09 08 298 718 1008 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, on. 08 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 55-mile round-trip journey 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 $132.90 (600 square feet a $2215 per hundred square feet). Calculate the custom margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total 0 0 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 0 0 0 0 $ $ 0 $ 0 $ $ 0 Required Required 2 > Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Other Total Wages 798 118 08 108 1000 Cleaning supplies 1009 08 08 08 1008 Cleaning equipment depreciation 710 08 08 298 1008 Vehicle expenses 0 760 08 1009 Office expenses OR 00 558 458 100$ President's compensation 08 08 298 713 1008 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving i on. 240 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 55-mile round-trip 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 $132.90 (600 square feet @ $22.15 per hundred square feet). Calculate thu margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs per mile Job support per job 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 55-mile round-trip journ 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 $132.90 (600 square feet @ $22.15 per hundred square feet). Calculate the cust 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 55-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.) Cost of the job Other 108 Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Wages 798 118 Cleaning supplies 1008 01 Cleaning equipment depreciation 710 08 Vehicle expenses 08 768 office expenses 00 08 President's compensation 03 08 Job Support 08 08 08 08 558 298 08 298 240 456 710 Total 1008 1000 1003 1008 1004 1008 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving Iss 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 55-mile round-trip jo 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 $132.90 (600 square feet a $22.15 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 revenue from the Flying N Ranch was $132.90 (6 hundred square feet @ $22.15 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 (Required 3 Recured

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