Gallatin Corpet Cleaning is a small, family-owned business operating out of Bozemsn, Montana. For its services, the company has always charged a fiat fee per hundred square foet of carpet cleaned. The current fee is $22.45 per hundred square feet. However. there is some question about whether the company is actually making any money on jabs for some customers - particularly those located on remote ranches that require considerable travel time. The owner's daughtec, home for the summer from college, has suggested linvestigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools, The activity cosi pools and their activity measures appear below: The total cost of operating the company for the year is $368,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Jot support consists of receiving calts from potential cistomers 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 800 square foot carpet-cleaning job at the Flying N Ranch-a 54 -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 $179.60 ( 800 square feet $22.45 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Prepare the first-stage allocation of costs to the activity cost pools. Required: 1. Prepare the first-stage alliocation 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 54 -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 $179.60 (800 square feet id $22.45 per hundred square feet). Calculate the customer margin eamed on this job. Complete this question by entering your answers in the tabs below. Cempute the activity nates for the activity cost pools. (Round your answers to 2 decimal places.) 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 54 -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 $179.60 (800 square feet $22.45 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The company recently completed a 800 square foot carpet-cleaning job at the Fiying N Ranch-a 54 -mlle round-trip journey from the company's offices in Bozeman, Compute the cost of this job using the activity-based costing system. (Round your. Iotermediate calculations and finel answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $179.60 f hundred square feet $22.45 per hundred square feet). Calculate the custemer margin earned on this job. (Negative customer margins should be indicated with a minus sign, Round your intermediate ealculations and final answers to 2 decimal places.)
