l

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 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: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (30) 20,000 hundred square feet Travel to jobs Miles driven 60.000 miles 10 support Number of jobs 2.ee fabs other organization sustaining costs and tale capacity costs) None Not applicable Heterences The total cost of operating the company for the year is $430,000 which includes the following costs Categies Clement depreciation Views President's Total $ 350,000 . 20.00 30.000 6,00 s0,000 430.00 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 70% 20% Cleaning supplies 100% ex Cleaning equipment depreciation BOX ex Vehicle expenses OR 60% Office expenses ex ox President's compensation ex OX Job Support 0% ex ex ex 45% 40% Other 10% ex 20% 40% 55% 60% Total 100% 100% 100% 100% 100% 100% 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 500 square foot carpet-cleaning job at the Flying N Ranch-a 75-mile round-trip journey 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 $140 (500 square feet @ $28 per hundred square feet). Calculate the customer ma earned on this job. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Total Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Jobs Carpets Job Support Other Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Required 2 > 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 Cleaning carpets Travel to jobs Job support Activity Rate per hundred square feet per mile per job Complete this question by entering your answers in the tabs below. 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 25-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 eaning job at the Flying N Ranch-a 75-mile round-tr maliy s ofices in Bozeman Compute the cost of this job using the activity-based costing system. e revenue from the Flying N Ranch was $140 (500 square feet @ $28 per hundred square feet). Calculate the cu ed on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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