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 $22.20 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 (008) 8,000 hundred square feet Travel to jobs Miles driven 221,000 miles Job support Number of Jobs 1,600 jobs other (organization-sustaining costs and idle capacity costs) Not applicable None The total cost of operating the company for the year is $347,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost 144,000 29,000 10,000 35,000 58,000 71,000 $ 347,000 Resource consumption is distributed across the activities as follows: Distribution of resource Consumption across Activities Cleaning Travel Carpets to Jobs Wages Cleaning supplies 1000 ou Cleaning equipment depreciation Vehicle expenses 08 796 office expenses 08 00 President's compensation os os 798 150 Job Support os ON 08 08 628 328 753 ON Other 68 Os 258 216 388 681 Total 1000 1000 1008 1000 1008 1001 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 58-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 $88,80 (400 square feet @ $22.20 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 Other 8,640 $ 0 0 0 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Carpets Job Support Jobs Wages $ 113,760 $ 21,600 $ of $ Cleaning supplies 29,000 Cleaning equipment depreciation 7,500 0 0 Vehicle expenses 27,650 Office expenses 0 0 35,960 President's compensation 0 22.720 Total cost $ 150.260 $ 49,250 $ 58,680 $ Total 144,000 29,000 10,000 35,000 58.000 71,000 347,000 0 2,500 7,350 22,040 48,280 88.810 $ 0 0 Required: Required 2 > 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 18.78 per hundred square feet Travel to jobs 0.22 per mile Job support 36.68 per 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 58-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 $ 7,561.44 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 $88.80 (4 hundred square feet @ $22.20 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 7.473.04 Required 3 Renuired