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 $22.80 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 Iocated on remote ranches that require considerable travel time. The owner's daughtec, home for the summer from college, hat 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: The total cost of operating the company for the year is $357.000 which includes the followit costs: Resource consumption is distributed across the activities as follows: Job support consists of receiving calls from potential customers at the home office, schecuung jous, Manig. tesolving issues. and so on Job support consists of receiving calls from potential customers at the home office, scheduling jobs, biling tesaiving 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 200 square foot carpet-cieaning job at the flying N Ranch-a 57 -mile round-tripjociney fram the company's offices in Bozeman. Compute the cost of this job using the activity-based costing syrtem. 4. The revenue from the Flying N Ranch was $45.60 (200 squse feet 9.522.80 per hundred square feet). Calculate the customet margin earned on this job. Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was 345.60 (2 hundred square feet e 322 . ea per hundred vquare feet). Calculace the customer margin eamed on this job. (Negative customer margins showld be indicated n ah a mitus sigh. Asund wour intermediate calculations and final answers to 2 decimal places.) Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, rosolwing 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 200 square foot carpet-cleaning job at the Flying N Ranch-a 57 -rille round-trip jowney 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 $45.60 (200 square feet a $22.80 per hundred square fees Calculate the cuatomer margin earned on this job. Complete this question by entering your answers in the tabs below. Job support consists of receiving calls from potential customers at the home office, scheduling jobs, buling, tesolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost poois. 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 57 -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 $45.60 (200 square feet $22.80 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch-a 57 -minle 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.)
