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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 $2270 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, hos 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 (008) 8,500 hundred square feet Travel to jobs Miles driven 326,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle capacity costs) Not applicable The total cost of operating the company for the year is $376,000 which includes the following costs: None Wages $ 147,000 Cleaning supplies 34.000 Cleaning equipment depreciation 20,000 Vehicle expenses 29,000 Office expenses 66,000 President's compensation 30.000 Total cost 5 376,000 Resource consumption is distributed across the activities as follows: Distribution or resource consumption Nerone Noticies Cleaning Travel to Carpets Jobs Wages 761 156 Cleaning supplies 1001 OS Cleaning equipment depreciation 739 09 Vehicle expenses 09 791 office expense OB 01 President's compensation 01 O Other Job Support 00 Os os ON 571 301 ON 274 210 438 703 Total 1000 1001 1001 1000 100% 100% Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Joba Support Other Total Wages 741 158 05 110 100% Cleaning supplies 1008 09 00 08 1001 Cleaning equipment depreciation 738 270 Vehicle expenses 01 796 08 210 1000 Office expenses 01 431 President's compensation 09 08 300 701 1001 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 03 08 1000 00 570 1000 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 - 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 $90.80 (400 square feet - $2270 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 Prepare the first stage allocation of costs to the activity cost pools Cleaning Travel to Jobs Carpets Wages Job Support Other Total Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Job Support Other Total Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Jobs Carpets Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 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 Rate per hundred square feet Activity Cost Pool Cleaning carpets Travel to jobs Job support per mile 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Regdired 4 The revenue from the Flying N Ranch was $90.80 (4 hundred square feet @ $22.70 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

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