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 $23.80 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, 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	Activity Measure	Activity for the Year
Cleaning carpets	Square feet cleaned (00s)	10,500	hundred square feet
Travel to jobs	Miles driven	325,500	miles
Job support	Number of jobs	2,000	jobs
Other (costs of idle capacity and organization-sustaining costs)	None	Not applicable

The total cost of operating the company for the year is $365,000, which includes the following costs:

Wages	$	148,000
Cleaning supplies		21,000
Cleaning equipment depreciation		12,000
Vehicle expenses		40,000
Office expenses		69,000
Presidents compensation		75,000
Total cost	$	365,000

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities

	Cleaning Carpets		Travel to Jobs		Job Support		Other		Total
Wages	77	%	16	%	0	%	7	%	100	%
Cleaning supplies	100	%	0	%	0	%	0	%	100	%
Cleaning equipment depreciation	70	%	0	%	0	%	30	%	100	%
Vehicle expenses	0	%	79	%	0	%	21	%	100	%
Office expenses	0	%	0	%	58	%	42	%	100	%
Presidents compensation	0	%	0	%	27	%	73	%	100	%
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 4 hundred square foot carpet-cleaning job at the Flying N rancha 58.00-mile round-trip journey from the companys offices in Bozeman. Compute the cost of this job using the activity-based costing system