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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 $22.2 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, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (costs of Idle capacity and organization-sustaining costs) Activity Measure Square feet cleaned (Oos) Miles driven Number of jobs Activity for the Year 7,000 hundred square feet 49,000 miles 1,900 jobs 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 Vehicle expenses Office expenses President's compensation Total cost $146,000 31,000 13.000 31.000 59.000 84.000 $364.000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Wages 71% Cleaning supplies Cleaning equipment depreciation 66% Vehicle expenses 09 Office expenses President's compensation 100% Total 100% 100% 100% 100% 100% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing. resolving issues, and so on. Requirement 1: Prepare the first stage allocation of costs to the activity cost pools. (Leave no cells blank - be certain to enter"0" wherever required. Omit the "S" sign in your response.) Distribution of Resource Consumption Across 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 value 10.00 points Requirement 2: Compute the activity rates for the activity cost pools, (Round your answers to 2 decimal places. Omit the "S" sign in your response.) Activity Cost Pool Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet per mile per job Requirement 3: The company recently completed a 4 hundred square foot carpet-cleaning job at the Flying Nranch-a 58- 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 answers to 2 decimal places. Omit the "S" sign in your response.) ABC Cost Activity Cost Pool Cleaning carpets Travel to jobs Job support Total 10.00 points Requirement 4: The revenue from the Flying N ranch was $88.8 (4 hundred square feet @ $22.2 per hundred square feet) Compute the margin from this job. (Round your answer to 2 decimal places. Negative amount sbould be indicated by a minus sign. Omit the "S" sign in your response.) Margin earned on job Value 10.00 points Requirements: What do you conclude concerning the profitability of the Flying Nranch job? O Gallatin Carpet Cleaning appears to be making money on the Flying N Ranch job O Gallatin Carpet Cleaning appears to be losing money on the Flying N Ranch job

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