Please answer all 4
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montena. For its services, the company has always charged o flat fee per hundred square feet of carpet cleoned. The current fee is $24.00 per hundred square feet. However. there is some question about whether the company is actually making ony money on jobs for some customers-porticularly those locoted on remote ronches thet require consideroble trovel time. The owner's doughter, home for the summer from college, hos suggested investigating this question using activity-bosed costing. After some discussion, she designed a simple system consisting of four octivity cost pools. The octivity cost pools and their activity messures appear below: The total cost of opersting the compony for the year is $361,000 which includes the following costs: Resource consumption is distributed across the activities os follows: Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepore the first-stoge ollocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The compony recently completed 0400 square foot carpet-clesning job ot the Flying N Ranch- 53 -mile round-trip journey from the compony's offices in Bozemsn. Compute the cost of this job using the octivity-besed costing system. 4. The revenue from the Flying N Ronch wos $96.00 (400 square feet @$24.00 per hundred square feet). Calculate the customer margin 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. Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montena. For its services, the company has always charged o flat fee per hundred square feet of carpet cleoned. The current fee is $24.00 per hundred square feet. However. there is some question about whether the company is actually making ony money on jobs for some customers-porticularly those locoted on remote ronches thet require consideroble trovel time. The owner's doughter, home for the summer from college, hos suggested investigating this question using activity-bosed costing. After some discussion, she designed a simple system consisting of four octivity cost pools. The octivity cost pools and their activity messures appear below: The total cost of opersting the compony for the year is $361,000 which includes the following costs: Resource consumption is distributed across the activities os follows: Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepore the first-stoge ollocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The compony recently completed 0400 square foot carpet-clesning job ot the Flying N Ranch- 53 -mile round-trip journey from the compony's offices in Bozemsn. Compute the cost of this job using the octivity-besed costing system. 4. The revenue from the Flying N Ronch wos $96.00 (400 square feet @$24.00 per hundred square feet). Calculate the customer margin 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
