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 customersparticularly those located on remote ranches that require considerable travel time. The owners daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:

Activity Cost Pool	Activity Measure	Activity for the Year
Cleaning carpets	Square feet cleaned (00s)		14,500		hundred square feet
Travel to jobs	Miles driven		203,000		miles
Job support	Number of jobs		1,900		jobs
Other (costs of idle capacity and organization-sustaining costs)	None		Not applicable

The total cost of operating the company for the year is $350,000, which includes the following costs:

Wages	$	149,000
Cleaning supplies		21,000
Cleaning equipment depreciation		8,000
Vehicle expenses		29,000
Office expenses		58,000
Presidents compensation		85,000
Total cost	$	350,000

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities

	Cleaning Carpets				Travel to Jobs				Job Support				Other				Total
Wages		80	%			10	%			0	%			10	%				100	%
Cleaning supplies		100	%			0	%			0	%			0	%				100	%
Cleaning equipment depreciation		68	%			0	%			0	%			32	%				100	%
Vehicle expenses		0	%			84	%			0	%			16	%				100	%
Office expenses		0	%			0	%			60	%			40	%				100	%
Presidents compensation		0	%			0	%			28	%			72	%				100	%

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

1. Prepare the first-stape alocation of costs so the soivity cost pools. eiviy Carpecs Sspport Wages 2 Compube tha acovity rates for tha acivity cost pools. Round your answars to 2 decimal places. Clesning carpete 3. The company re enty oompeted 4 hnd e square oat oa pe o ean g ob a tne F in N an 1 Om e un ip oumey from the o m an s ott oes n ce man. ?? p te the cost ot thajot us g the act it as o tr system our d your inte mediate and final ansoers to de nal places . The revenuc from the Flying N ranch was $88.80(4 hundred square feet a: $22 20 per hundred square feet). Prepare a report showing the margin from this job (Round your intermediate calaulations and final answwers to 2 decimal places. Gallatin Carpet Cleaning Custome Costing