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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 $28 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 (ees) Miles driven Number of Jobs Activity for the Year 20,000 hundred square feet 60,000 miles 2,000 jobs None Not applicable The total cost of operating the company for the year is $430,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 150,000 40,000 20,000 80,000 60,000 80,000 $430,000 Job Support 70 Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 20 Cleaning Supplies 100% Cleaning equipment depreciation BOK Vehicle expenses office expenses ox Ox President's compensation OX os os Other 101 0 20% 40 558 Total 100% 100% 100 100 100 OOK 455 405 100% rences 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 500 square foot carpet-cleaning job at the Flying N Ranch a 75-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 $140 (500 square feet 528 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 OR Prepare the first stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total ences $ 0 0 0 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 0 0 0 0 $ 0 $ 05 0$ $ 0 Red 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 4. The revenue from the Flying N Ranch was $140 (500 square feet @ $28 per hundred square feet). Calculate 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 500 square foot carpet-cleaning job at the Flying N Ranch-a 75-mile round-tri from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Ron intermediate calculations and final answer to 2 decimal places.) Cost of the job 4. The revenue from the Flying N Ranch was $140 (500 square feet a $28 per hundred square feet). Calculate the custom earned on this job. 2 nts Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Required 4 Print Ceferences The revenue from the Flying N Ranch was $140 (500 square feet @ $28 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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