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 $22.70 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 Coat Pool Activity Mar Activity for the Year Cleaning carpets Square feet cleaned (005) 8,000 hundred square feet Travel to jobs Miles driven 244,000 miles Job support Number of jobs 1.800 Jobs Other (organizatiosustaining costs and idle capacity costa) None Not applicable The total cost of operating the company for the year is $368,000 which includes the following costs: Mages $ 149,000 Cleaning supplies 33,000 cleaning equipment depreciation 13,000 Vehicle expenses 37,000 office expenses 58,000 President's compensation 78,000 Total coat Resource consumption is distributed across the activities as follows: Distribution of nanource consumption Motors notivities Cleaning Travel to Job Carpet Jobs Support Wagen Cleaning supplies 1001 01 ON 1008 Cleaning equipment depreciation 755 01 ON 250 1000 Vehiele expenses 08 BON 00 201 ottice expenses 00 561 1001 President's compensation os 720 1005 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 54-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 $136.20 (600 square feet $22.70 per hundred square feet). Calculate the customer margin earned on this job, 770 ON ON Other 00 Total 1001 1000 08 440