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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 $2275 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 Investigatng 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 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 12,000 hundred square feet 412,500 miles 1,900 jobs None Not applicable The total cost of operating the company for the year is $373,000 which includes the following costs: Wages Clessing supplies Cleaning equipment depreciation Delicle expenses $ 147,368 32,000 14,000 27,000 68,000 85.000 $ 373,000 President's compensation Total cost Resource consumption is distributed across the activities as follows: Dob Support Distribution of Resource Consumption Across Activities Cleaning Travel derpels to Jobs 713 14 Cleaning Supplies Lee @A Cleaning equipment depreciation pe Vehicle experises 1 Office expenses 22 President's compensation Other 15 em 30 1914 BGH! 721 Toual 100% 108 1823 100 180 186 ex 54% Job support consists of recelving calls from potential customers at the home ofice, scheduling jobs, billing, resolving issues, and so on. Required- 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 57-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 $91.00 (400 square feet @ $2275 per hundred square feet). Calculate the customer margin eared 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 Venice menses President's compensation Required 2 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 per hundred square feet Activity Cost Pool Cleaning carpets Travel to jobs Job support per mile per job Job support consists of receiving calls from potential customers at the home office, scheduling jobs, biling, 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 400 square foot carpet-cleaning Job at the Flying N Ranch-a 57-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 $91.00 (400 square feet @ $2275 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 3 Required 4 The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch-a 57-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 complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N Ranch was $91.00 (4 hundred square feet @ $22.75 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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