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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 Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (008) 7,000 hundred square feet Travel to jobs Miles driven 144,500 miles Job Support Number of Jobs 1,800 Jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $360,000 which includes the following costs: Wages $ 144,000 Cleaning supplies 34,000 Cleaning equipment depreciation 9,000 Vehicle expenses 38,000 Office expenses 64,000 President's compensation 71,000 Total cost $360,000 Resource consumption is distributed across the activities as follows: Job Support os 00 Distribution of Resource Consumption Cross Activities Cleaning Travel to Carpets Jobs Wages 750 120 Cleaning mupplies 1000 08 Cleaning equipment depreciation 694 08 Vehicle expenses ON 831 Office expenses 01 ou President's compensation 08 os 08 other 134 00 310 170 361 680 Total 1008 1000 1001 1001 1001 1001 ON 641 325 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 800 square foot carpet-cleaning Job at the Flying N Ranch -a 54-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 $178.80 (800 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. Job Support Other Total $ O 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 Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 0 $ 0 0 0 0 0 0 $ 0$ 0 $ Red Required 2 > U 328 bH 100 President's compensation 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 800 square foot carpet-cleaning job at the Flying N Ranch-a 54-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 $178.80 (800 square feet @ $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. 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 Vehicle expenses Office expenses President's compensation 05 09 00 08 08 OL 644 32 175 366 688 1001 1008 1000 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 800 square foot carpet-cleaning job at the Flying N Ranch-a 54-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 $178.80 (800 square feet a $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. Required 1 Required 2 Required 3 Required 4 The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch - 54-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 Vehicle expenses office expenses President's compensation 08 08 09 831 05 O. 08 648 328 178 369 688 100% 1008 100% 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 800 square foot carpet-cleaning job at the Flying N Ranch-a 54-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 $178.80 (800 square feet @ $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. Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $178.80 (8 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

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