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Problem 7-20 (Algo) Evaluating the Profitability of Services (LO7-2, L07-3, L07-4, L07-5) 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 $23.30 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 Cont Pool Activity Measure Activity for the Year Cleaning carpets Square foot cleaned (005) 10,000 hundred square feet Travel to jobs Miles driven 153,000 miles Job support Number of jobs 2.000 jobs Other (organization-sustaining costs and idle capacity conta) Not applicable The total cost of operating the company for the year is $368,000 which includes the following costs: None Wagen Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 140,000 33,000 17,000 37.000 58,000 83,000 5368.000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Cross Activities cleaning Travel to Carpet Jobs Wagen 769 101 Job Support 06 Other 146 Total LOOR Distribution of Resource Consumption across Activities Cleaning Travel to Carpeta Jobs Wagen 766 100 Cleaning supplies 100% 08 Cleaning equipment depreciation 690 ON Vehicle expenses 00 834 Office expenses ON 08 President's compensation 08 Job Support 00 08 ON 00 588 330 Other 140 09 310 170 424 678 Total 1008 1000 1000 100% 100% 1000 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 56-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 $139.80 (600 square feet o $23.30 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 1 Required 2 Prepare the first stage allocation of costs to the activity cost pools Other Total Job Support Cleaning Carpets Travel to Jobs 0 Traiyur edire VITUIS JOU. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Other Total OO Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Jobs Job Support Carpets Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ $ 0 $ 0 0 0 0 0 s 0 $ 0 Required 2 > 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 56-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 $139.80 (600 square feet a $23.30 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 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 por job 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 56-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 $139.80 (600 square feet o $23.30 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 The company recently completed a 600 square foot carpet-cleaning sob at the Flying N Ranch 56-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 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 56-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 $139.80 (600 square feet @ $23.30 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 The revenue from the Flying N Ranch was $139.80 (6 hundred square feet $23.30 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minuu sign. Round your Intermediate calculations and final answers to 2 decimal places) Customer margin