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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 $23.65 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 (ees) 12,500 hundred square feet Travel to jobs Miles driven 283,000 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 $348,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 143,000 28,000 17,000 29,00 57,000 74,000 $ 348,000 Resource consumption is distributed across the activities as follows: Job Support es Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 755 13 Cleaning supplies 100% Cleaning equipment depreciation 689 Vehicle expenses es 819 office expenses President's compensation OS Other 12 05 32 19 374 715 Total 100 1001 1004 100 es 634 299 100 1005 ity-based costing system. from the Flying N Ranch was $94.60 (400 square feet @ $23.65 per hundred square feet). Calcula margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first stage allocation of costs to the activity cost pools. Cleaning Carpets Travel to Jobs Job Support Other Total Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Required 2 > 3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranc company's offices in Bozeman. Compute the cost of this job using the activity-based costing sy= 4. The revenue from the Flying N Ranch was $94.60 (400 square feet @ $23.65 per hundred sa 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 Rate Activity Cost Pool Cleaning carpets Travel to jobs Job support per hundred square feet per mile per job UTCe expenses President's compensation % 05% 294 373 71% 100 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issue 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 51-mile round-trip journ 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 $94.60 (400 square feet @ $23.65 per hundred square feet). Calculate the cus 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 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.) Cost of the job ents compensation 03 294 71% 100 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving iss 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 51-mile round-trip jou 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 $94.60 (400 square feet @ $23.65 per hundred square feet). Calculate the margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Requirey The revenue from the Flying N Ranch was $94.60 (4 hundred square feet @ $23.65 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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