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 $23.05 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 Cont Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (001) 6,500 hundred square feet Travel to jobs Milos driven 127,000 miles Job support Sumber of jobo 1,900 Jobs other organization-sustaining costs and idle capacity conta None Not applicable The total cost of operating the company for the year is $348,000 which includes the following costs; Hages Cleaning supplies Cleaning equipment depreciation Vehicle expenses DELCO expenses President's compensation Total cost $ 139,000 32.000 300 26.000 63.000 2.000 $340,000 Joba Resource consumption is distributed across the activities as follows: Distribution of Resource Conmumption Maroon Activities Cleaning Travel to Carpets Total Wagen 768 161 Cleaning supplies 1004 OR Cleaning equipment depreciation 710 08 Vehicle expenses 00 770 O co cxpense DE 0 6 President's compensation 08 06 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing. resolving issues, and so Job Support 00 06 ON Other BE 00 290 1000 1001 1001 2001 1008 TOD: cos 27 35 653 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 600 square foot carpet cleaning job at the Flying N Ranch-a 54 mile round-trip joumey 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 $138.30 (600 square feet e $23.05 por hundred square foot Calculate the customer margin camned on this job