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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 $23.50 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 9,000 hundred square feet 395,000 miles 1,900 Jobs Not applicable None The total cost of operating the company for the year is $336,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Ottice expense President's compensation Total cost $ 137,000 22,000 17,000 27,000 57,000 76,000 $336,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activities Cleaning Travel Job Carpets to Jobs Support Wagen 788 111 0 Cleaning supplies 1008 01 OU Cleaning equipment depreciation 720 01 0 Vehicle expenses ON 751 08 Office expenses 0 00 658 President's compensation ou On Other 110 00 280 25 351 698 Total 1001 1001 1008 1001 1000 1001 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 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 N Ranch was $94.00 (400 square feet $23.50 per hundred square feet). Calculate the customer margin earned on this job. low Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Other Total GA 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 Presidents compensation Total cost $ os 0$ OS 0 0 0 0 0 0 0 Os patur 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 per mile Job support per 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 400 square foot carpet-cleaning job at the Flying N Ranch-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. (Round your Intermediate calculations and final answer to 2 decimal places.). Cost of the job

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