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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 $22.35 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 support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (05) Miles driven Number of jobs Activity for the Year 14,500 hundred square feet 178,000 miles 2,100 jobs Not applicable None The total cost of operating the company for the year is $359,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 135,000 24,000 15,000 34,000 68,000 83,000 $ 359,000 Resource consumption is distributed across the activities as follows: Job Support 08 Distribution of Resource Consumption herosa Activities cleaning Travel Carpets to Jobs Wages 720 150 Cleaning supplies 1008 08 Cleaning equipment depreciation 698 08 Vehicle expenses 09 office expenses os 08 President's compensation 08 00 08 Other 130 00 318 230 398 731 Total 1008 1000 1005 1001 1005 1000 771 610 278 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 N Ranch-a 58-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 $89.40 (400 square feet o $22.35 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Other Total $ 0 Required 1 Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Job Support Carpets Jobs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation $ Total cost 0 $ 0 $ 0 $ 0 0 0 0 0 0 $ 0 Required Required 2 > 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 Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs Job support per job per mile Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch-a 58-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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $89.40 (4 hundred square feet @ $22.35 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 Required 3 Required

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