Homework Saved 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 $22.35 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 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 (00s) 13,000 hundred square feet Travel to jobs Miles driven 157,000 miles Job support Number of jobs 1,600 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $363,000 which includes the following costs: Wages cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 147,000 29,000 12,000 27,000 64,000 84,000 $363,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 738 138 cleaning supplies 1008 09 Cleaning equipment depreciation 698 08 Vehicle expenses 08 BOS office expenses 09 OR President's compensation 08 08 Job Support 08 08 08 08 658 298 Other 144 08 310 200 358 718 Total 1000 100% 100 100% 1005 1008 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 Nranch-a 57-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 $89.40 (400 square feet @ $22.35 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Other Total Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Job Travel to Carpets Jobs Support Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Required 1 Required 2 > JOD using the activity-based costing system. 4. The revenue from the Flying N ranch was $89.40 (400 square feet o $22.35 per hundred square feet). Calculate the cus margin earned on this job. Complete this question by entering your answers in the tabs below. 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 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, 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 57-mile round-trip journe company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying Nranch was $89.40 (400 square feet a $22.35 per hundred square feet). Calculate the custo margin earned on this job. Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 Required 4 The company recently completed a 400 square foot carpet-cleaning job at the Flying N ranch-a 57-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 2 Required 4 > 1 08 Vehicle expenses office expenses President's compensation 03 06 08 803 08 OB 65 208 358 718 100% 1008 1008 298 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues 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 57-mile round-trip Journ 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 $89.40 (400 square feet @ $22.35 per hundred square feet). Calculate the cus margin earned on this job. Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 Required 4 The revenue from the Flying N ranch was $89.40 (4 hundred square feet @ $22.35 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.) Customer margin