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 $28 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 actlvity-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 Activity for the Year Cleaning carpets Square feet cleaned (0) 20,000 hundred square feet Travel to jobs Miles driven 60,000 miles Job Support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $430,000 which includes the following costs. Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 150,000 40,000 20,000 80,000 60,000 80,000 $430,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activities Cleaning Travel Job Carpets to Jobs Support Wages 704 205 ON Cleaning supplies 1009 0 os Cleaning equipent depreciation SON 0 ON Vehicle expenses 01 601 04 office expenses ON ON 45 President's compensation 09 401 Other 105 09 200 405 554 609 Total 1001 1004 1005 1001 1001 1005 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 500 square foot carpet-cleaning job at the Flying N Ranch - 75-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 5140 (500 square feet o $28 per hundred square feet). Calculate the customer margin carned on this job, Complete this question by entering your answers in the tabs below. Required Required Required Required 4 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 $ 0 0 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Otice expenses President's compensation Total cost 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 Required 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 Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs Job support per job per mile Required 1 Required 2 Required 3 Required 4 The company recently completed a 500 square foot carpet-cleaning job at the Flying N Ranch-a 75-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 Required 1 Required 2 Required 3 Requifed 4 The revenue from the Flying N Ranch was $140 (500 square feet @ $28 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