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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

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 $23.10 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customersparticularly those located on remote ranches that require considerable travel time. The owners 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:

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Required 1 Required 2 Required 3 Required 4 4 3 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 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 $23.10 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 thelr activity measures appear below: 8.34 points Activity Rate Activity Cost Pool Cleaning carpets Travel to jobs Job support per hundred square feet per mile per job eBook 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 7,5ee hundred square feet 82,500 miles 1,8ee jobs Print None Not applicable Prepare the first-stage allocation of costs to the activity cost pools. C References The total cost of operating the company for the year is $371,000 which includes the following costs: Cleaning Carpets Travel to Jobs Job Support Other Total Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 147, eee 29, eee 18, eee 36,000 62, eee 79,000 $ , 371, eee Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Resource consumption is distributed across the activities as follows: Required: Required 2 > Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 73% 12% Cleaning supplies 100% 8% cleaning equipment depreciation 71% ex Vehicle expenses 8% 76% Office expenses ex ex President's compensation 0% ex Job Support Other ex 15% ex 0% ex 29% 8% 24% 59% 41% 29% 72% Total leex 100% lees 100% 100% 100% Required 1 Required 2 Required 3 Required 4 The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch-a 51-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.) Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving issues, and so on. Cost of the job 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 51-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 $92.40 (400 square feet @ $23.10 per hundred square feet). Calculate the customer margin earned on this job. Required 1 Required 2 Required 3 Required 4 Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $92.40 (4 hundred square feet @ $23.10 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.) Required: Required 2 Required 3 Required 4 Customer margin

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