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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 fiat 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 fiat fee per hundred square feet of carpet cleaned. The current fee is $23.55 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, nas 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 Cleaning carpets Activity Measure Activity for the Year Travel to joba Square feet cleaned (003) 12,000 hundred square feet Miles driven Job support 325,500 miles Number of Jobe Other (organization-sustaining costs and 1.900 jebe sale capacity costs) None Not applicable The total cost of operating the company for the year is $354,000 which includes the following costs Mages $ 140,000 Cleaning supplies 26,000 Cleaning equipment depreciation 9,000 Vehicle expenses 38.000 ottice expenses 55,000 President's compensation 76,000 Total cost $ 354,000 Resource consumption is distributed across the activities as follows Distribution of resource consumption across Activities cleaning Travel to Carpets Support Other Wages 720 110 1000 Cleaning supplies 1008 ON Cleaning equipment depreciation 761 260 Vehicle expenses 04 731 00 221 of tice expenses 00 650 350 President's compensation 35 650 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on Job Joba Total 00 170 08 00 1001 1000 1008 LOON 100 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 54mile 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 $141.30 (600 square feet o $23.55 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required) 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 supples Cleaning equipment depreciation Veide expenses Office expenses President's compensation Total cost Required 2 >

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