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nome 1or me summer rom college, nas suggested investigaung this question using activity-Daseu cosung, Arter some discussion, she designed a simple system consisting of four

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nome 1or me summer rom college, nas suggested investigaung this question using activity-Daseu cosung, Arter 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 (Oos) 11,000 hundred square feet Travel to jobs Miles driven 147,500 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $372,000 which includes the following costs: 169 Wages $ 139,000 Cleaning supplies 27,000 Cleaning equipment depreciation 18,000 Vehicle expenses 37,000 office expenses 66,000 President's compensation 85,000 Total cost $ 372,000 Resource consumption is distributed across the activities as follows: Distribution of resource Consumption deross Activities Cleaning Travel to Job Carpeta Jobs Support other Total Wages 760 08 88 1001 cleaning supplies 1001 08 08 01 1001 Cleaning equipment depreciation 730 00 08 270 1005 Vehicle expenses 0 831 os 170 office expenses 1000 01 ON 630 President's compensation 374 1000 ou 00 281 720 1001 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 N Ranch-a 58-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 $92.00 (400 square feet o $23.00 per hundred square feet). Calculate the customer margin earned on this job. Dr

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