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 $22.85 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 Square feet cleaned (00s) Miles driven Number of jobs Activity for the Yea:r hundred square Cleaning carpets Travel to jobs Job support Other (organization- 13,000 feet 347,000 miles 1,900 jobs sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $342,000 which includes the following costs $142,000 28,000 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 7,000 29,000 62,000 74,000 $342,000 Resource consumption is distributed across the activities as follows Distribution of Resource Consumption Across Activities Travel Cleaning to Job Carpets Jobs Supportother Tota.l 100% 100% 75% 100% 13% 0% 08 08 12% 0% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 73% 0% 0% 76% 0% 08 08 58% 31% 27% 24% 42% 69% 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. 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 52-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 $91.40 (400 square feet@ $22.85 per hundred square feet). Calculate the customer margin earned on this job