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 $23.20 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 (ees) 11, eee hundred square feet Travel to jobs Miles driven 244, eae miles Job support Number of jobs 2,100 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $341,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 140, eee 28 , 7,000 38,00 55, eee 73,000 $ 341,ede Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities cleaning Travel Carpets Wages to Jobs Job Support Other 78% 13% e% Cleaning supplies 9% 1eex BX Cleaning equipment depreciation 0% e% Vehicle expenses 69% 8% 0% 31% ex Office expenses 833 ex 17% OX President's compensation ex 63% 37% ox ex 255 75% Total 1ees 100% 100% 1eex 100% 100 ex Office expenses President's compensation ex ex 63% 25% 37% 75% 100% 10x 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 Nranch-a 55-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 Nranch was $92.80 (400 square feet a $23.20 per hundred square feet). Calculate the custom stomer margin earned on this job. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Job Carpets Support Travel to Jobs Other Total Wagos Cleaning supplies Cleaning equipment depreciation Vehiclo exponses Office expenses President's compensation Total cost