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Gallotin 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

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Gallotin 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 $23,90 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particuiarly those tocated 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 thelr activity measores appear below The total cost of operating the company for the year is $353,000 which indudes the following costs: Resource consumption is distributed across the activities as follows: Job support consists of recelving calls from potental 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 600 square foot carpet-cleaning job at the Flying N Ranch-a 59 -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 $143,40,600 square feet &$23,90 per hundred square feet. Calculate the customer margin earned on this job

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