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 $22.20 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) 12,000 hundred square feet Travel to jobs Miles driven 380,000 miles Job support Number of joba 2,100 jobs other organization-sustaining costs and idle capacity costa) None Not applicable The total cost of operating the company for the year is $364,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehiele expenses ottice expenses President's compensation Total cost $ 145,000 27,000 16,000 34,000 62,000 80.000 $364,000 Resource consumption is distributed across the activities as follows: Distribution of resource consumption Across Activities cleaning Travel Carpets Wages to Jobs 714 150 Cleaning supplies 2001 08 Cleaning equipment depreciation 741 Vehicle expenses 08 os Ottice expenses 810 OU 00 President's compensation 08 ON Job Support 08 08 08 ON 600 319 Other 144 0 261 194 40R 694 Total 100% 1000 1000 1001 1008 1001 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and 50 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 52-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 $133.20 (600 square feet @ $22.20 per hundred square feet). Calculate the customer margin eamed on this job