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 $23.10 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 Coat Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (005) Miles driven Number of jobs Activity for the Year 7,000 hundred square feet 300,000 miles 1,700 Jobs None Not applicable The total cost of operating the company for the year is $358,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 146,000 29,000 15,000 30,000 60,000 78,000 $ 358,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 770 131 Cleaning supplies 1001 ON Cleaning equipment depreciation 701 ON Vehicle expenses 08 774 office expenses 08 01 President's compensation OS 08 Job Support Os 0 O 0 578 27 Other 101 ON 300 230 435 735 Total 1001 1005 1008 1000 1008 1000 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 800 square foot carpet-cleaning job at the Flying N Ranch-a 60-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 $184.80 (800 square feet @ $23.10 per hundred square feet). Calculate the customer margin earned on this job