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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 foe is $22.90 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 (ees) 7,000 hundred square feet Travel to jobs Miles driven 99,000 miles Job support Number of Jobs 2,000 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $348,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 147,000 33,000 6. 33,082 55.ee 74,000 $ 348,000 Resource consumption is distributed across the activities as follows: Job Support Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs 792 Wages 133 Cleaning supplies 188% BA Cleaning equipment depreciation 73% 87 Vehicle expenses B3 Office expenses ens President's compensation % Other 8% X 27% 17 Total 180 100 100 100 1001 100% SB 27% 78% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, biling, 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 60-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 Fiving N Ranch was $183.20 1800 square feet $22.90 per hundred square feet. Calculate the customer UM B2% Vehicle expenses Office expenses President's compensation ex B% ex S8X 27% 17% 42% 73% HERE 100% 100% 1988 ex Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving issues, and 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 60-mile round-trip Journey fro 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 $183.20 (800 square feet @ $22.90 per hundred square feet). Calculate the custome margineared on this job. Complete this question by entering your answers in the tabs below. Other Total Required I Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Carpets Job Support Jobs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 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 Rate per hundred square feet Activity Cost Pool Cleaning carpets Travel to jobs Job support per mile per job Resource consumption is distributed across the activities as follows: Job Support Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 79% 13% Cleaning supplies 100% ex Cleaning equipment depreciation 73% ex Vehicle expenses ex 83% Office expenses ex 8% President's compensation ex ex ex ex ex 58X 27% Other BZ BL 27% 17% 42% 73% Total 10ex 160 100X 100% 100% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and 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 60-mile round-trip Journey fro 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 $183.20 (800 square feet @ $22.90 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 The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch-a 60-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 Resource consumption is distributed across the activities as follows: Job Support Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 79% 13% Cleaning supplies 100% ex Cleaning equipment depreciation 73% ex Vehicle expenses 83% Office expenses es ex President's compensation ex Other BX BA 27% 17% 42 73% Total 18ex 1eex 18ex 100% 100% ex ex 58% 27% 160x 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 60-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 $183.20 (800 square feet @ $22.90 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required The revenue from the Flying N Ranch was $183.20 (8 hundred square feet @ $22.90 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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