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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 $24.05 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: The total cost of operating the company for the year is $361,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Resource consumption is distributed across the activities as follows: 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 600 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. 4. The revenue from the Flying N Ranch was $144.30 (600 square feet @ $24.05 per hundred square feet). Calculate the customer margin earned on this job. The revenue from the Flying N Ranch was $144.30 (600 square feet @ $24.05 per hundred square feet). Calculate the custome nargin 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. Explanation 1. The first-stage allocation of costs to activity cost pools appears below: Wages: Cleaning Carpets =79%$147,000=$116,130 Travel to Jobs =15%$147,000=$22,050 Job Support =0%$147,000=$0 Other =6%$147,000=$8,820 Cleaning supplies: Cleaning Carpets =100%$30,000=$30,000 Travel to Jobs =0%$30,000=$0 Job Support =0%$30,000=$0 Other =0%$30,000=$0 Cleaning equipment depreciation: Cleaning Carpets =73%$8,000=$5,840 Travel to Jobs =0%$8,000=$0 Job Support =0%$8,000=$0 Other =27%$8,000=$2,160 Vehicle expenses: Cleaning Carpets =0%$39,000=$0 Travel to Jobs =76%$39,000=$29,640 Job Support =0%$39,000=$0 Other =24%$39,000=$9,360 Office expenses: Cleaning Carpets =0%$64,000=$0 Travel to Jobs =0%$64,000=$0 Job Support =61%$64,000=$39,040 Other =39%$64,000=$24,960 President's compensation: Cleaning Carpets =0%$73,000=$0 Travel to Jobs =0%$73,000=$0 Job Support =34%$73,000=$24,820 Other =66%$73,000=$48,180 Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 2. The activity rates are computed as follows: Complete this question by entering your answers in the tabs below. The company recently completed a 600 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.) 3. The cost for the Flying N Ranch job is computed as follows: Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $144.30 (600 square feet @ $24.05 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.) The margin earned on the job can be easily computed by using the costs calculated in part (3) above. 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 $24.05 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: The total cost of operating the company for the year is $361,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Resource consumption is distributed across the activities as follows: 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 600 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. 4. The revenue from the Flying N Ranch was $144.30 (600 square feet @ $24.05 per hundred square feet). Calculate the customer margin earned on this job. The revenue from the Flying N Ranch was $144.30 (600 square feet @ $24.05 per hundred square feet). Calculate the custome nargin 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. Explanation 1. The first-stage allocation of costs to activity cost pools appears below: Wages: Cleaning Carpets =79%$147,000=$116,130 Travel to Jobs =15%$147,000=$22,050 Job Support =0%$147,000=$0 Other =6%$147,000=$8,820 Cleaning supplies: Cleaning Carpets =100%$30,000=$30,000 Travel to Jobs =0%$30,000=$0 Job Support =0%$30,000=$0 Other =0%$30,000=$0 Cleaning equipment depreciation: Cleaning Carpets =73%$8,000=$5,840 Travel to Jobs =0%$8,000=$0 Job Support =0%$8,000=$0 Other =27%$8,000=$2,160 Vehicle expenses: Cleaning Carpets =0%$39,000=$0 Travel to Jobs =76%$39,000=$29,640 Job Support =0%$39,000=$0 Other =24%$39,000=$9,360 Office expenses: Cleaning Carpets =0%$64,000=$0 Travel to Jobs =0%$64,000=$0 Job Support =61%$64,000=$39,040 Other =39%$64,000=$24,960 President's compensation: Cleaning Carpets =0%$73,000=$0 Travel to Jobs =0%$73,000=$0 Job Support =34%$73,000=$24,820 Other =66%$73,000=$48,180 Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 2. The activity rates are computed as follows: Complete this question by entering your answers in the tabs below. The company recently completed a 600 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.) 3. The cost for the Flying N Ranch job is computed as follows: Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $144.30 (600 square feet @ $24.05 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.) The margin earned on the job can be easily computed by using the costs calculated in part (3) above