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 $23.60 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 Hocated 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 Your 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) 8,000 hundred square feet Travel to Jobs Miles driven 189,000 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 $358,000 which includes the following costs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 149,000 24,000 10,000 40,000 63,000 72,000 $ 358.000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Wages 71% 123 Cleaning supplies 100% os Cleaning equipment depreciation 663 ex ex 333 office expenses 03 ex President's compensation Ox Job Support Other ex 17% ex ex es 34% ex 17% 63% 37% 33% 67% Total 100% 100% 100% 100% 10 LOOK Vehicle expenses Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 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 56-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 S188.80 (800 square feet @ $23.60 per hundred square feet). Calculate the customer margin eamed on this job