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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 $23.65 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 Cleaning carpets Travel to jobs Job suppoanization-sustaining costs and Ot idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Activity for the Year 8,500 hundred square feet 350,000 miles 1,800 jobs Not applicable None The total cost of operating the company for the year is $356,000 which includes the following costs: 145,000 29,000 11,000 29,000 61,000 81,000 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 356,000 Resource consumption is distributed across the activities as follows: The total cost of operating the company for the year is $356,000 which includes the following costs: 145,000 Wages Vehicle expenset depreciation Office expenses Cleani pplies 11.000 29,000 61,000 81,000 President's compensation 356,000 Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Travel to Jobs Cleaning Job Carpets 769 Support 0 % Other Total 12% 12% 100% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President 's compensation 100% 0% 0% 0% 100% 688 0% 0% 32% 1008 0% 75% 09 25% 100% 0% 09 64% 36% 100% 100 03 0 9 34 668 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 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 200 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 $47.30 (200 square feet @ $23.65 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 The company recently completed a 200 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. (Round your intermediate calculations and final answer to 2 decimal places.) 193.65 Cost of the job $ Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so n. Required: Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. . The company recently completed a 200 square foot carpet-cleaning job at the Flying N ranch-a 56-mile round-trip journey from the company's offices in Bozeman. Compute thee cost of this job using the activity-based costing system. 4. The revenue from the Flying N ranch was $47.30 (200 square feet @ $23.65 per hundred square feet). Calculate the customer margin earned on this job Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 1 Required 2 The revenue from the Flying N ranch was $47.30 (2 hundred square feet @ $23.65 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.) Customer margin

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