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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 $2375 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 (05) 9,000 hundred square feet Travel to jobs Miles driven 245,500 miles Job Support Number of jobs 1,900 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $370,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 143,000 29,000 19,800 26,000 68,888 85,000 $ 370,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Wages 744 15 e9 Cleaning supplies 1009 09 es Cleaning equipment depreciation 705 e Vehicle expenses % 76% 89 Office expenses 05 24 594 President's compensation 05 295 Other 115 es 309 245 411 714 Total 100% 100% 1089 100 100 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 200 square foot carpet-cleaning Job at the Flying N Ranch-a 60-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 $47.50 (200 square feet a $23.75 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 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Wages 744 154 09 Cleaning supplies 100% 24 0% Cleaning equipment depreciation 70 05 09 Vehicle expenses 09 764 09 Office expenses 0% 0% 59% President's compensation 04 09 294 Other 11% es 30% 24% 41% 71% Total 100% 100% 100% 1084 100% 1084 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 200 square foot carpet-cleaning job at the Flying N Ranch-a 60-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 $4750 (200 square feet @ $23.75 per hundred square feet). Calculate the customer margin earned on this job. a Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Other Total 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 President's compensation Total cost Required Required 2 > Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 19,000 26,000 68,000 85,000 $ 370,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support 749 15% 06 Cleaning supplies 100% es es Cleaning equipment depreciation 704 es 89 Vehicle expenses 764 84 Office expenses 599 President's compensation es ON 299 Other 115 Wages es 5635 309 24 415 71% Total 100% 100% 100 100 100 100 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 200 square foot carpet-cleaning job at the Flying N Ranch-a 60-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 $47.50 (200 square feet o $23.75 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 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 143,000 29, eee 19,000 26,000 68,000 85 000 $ 370,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other Wages 741 15$ es 119 Cleaning Supplies 1005 OS es Cleaning equipment depreciation 7090 08 309 Vehicle expenses os 760 04 245 Office expenses OS ON 599 415 President's compensation es 295 714 Total 100% 100% 1005 100 100% 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 200 square foot carpet-cleaning job at the Flying N Ranch-60-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 $4750 (200 square feet o $23.75 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 200 square foot carpet cleaning job at the Flying N Ranch-a 60-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 (Required 2 Required 4 > Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 143,000 29,000 19,000 26,000 68,000 85,000 $ 370,000 Job Support Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 745 154 Cleaning supplies 100% es Cleaning equipment depreciation 709 09 Vehicle expenses BS 764 Office expenses 09 President's compensation 04 04 09 89 595 295 Other 11 OS 389 249 410 719 Total 100% 1004 1009 100 100% 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 200 square foot carpet-cleaning Job at the Flying N Ranch-a 60-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 $47.50 (200 square feet o $23.75 per hundred square feet), Calculate the customer margin earned on this job Complete this question by entering your answers in the tabs below. Required: Required 2 Required Required 4 The revenue from the Flying N Ranch was $47.50 (2 hundred square feet $23.75 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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