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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 $22.85 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customersparticularly those located on remote ranches that require considerable travel time. The owners 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:

apter 07 Homework Saved Help Save & Exit Submit Check my work 5 Gallatin Carpet Cleaning is a small, family owned business operating out of Bozeman, Montana. For its services, the company hos always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.85 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: eBook Ask Activity Cost Pool Cleaning carpeta Travel to joba Job support other organization-sustaining costs and idle capacity conte) Activity Meanure Square feet cleaned (008) Milos driven Number of jobs Activity for the Year 3,000 hundred square feet 180,000 miles 1,800 jobb Print None Not applicable eferences The total cost of operating the company for the year is $347,000 which includes the following costs. Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 136,000 30,000 10,000 34,000 67,000 70,000 $ 347,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities cleaning Travel Job aw II er 07 Homework 6 Saved Help Save & Exit Submit Check my work 5 bistribution of Resource Consumption across Activities cleaning Travel Carpets to Jobs Wages 786 130 Cleaning supplies 100 08 Cleaning equipment depreciation 698 05 Vehicle expenses 08 85 office expenses ON O President's compensation ot 03 Job Support 09 09 05 01 581 341 Other 95 00 318 Total 1000 1008 1003 1001 1000 1000 25 421 668 Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on, int onces 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 800 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 $182.80 (800 square feet a $22.85 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 Prepare the first stage allocation of costs to the activity cost pools. 5 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools. eBook Cleaning Carpets Travel to Jobs Job Support Other Total Ask $ 0 Print 0 ferences 0 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 Required Required 2 > aw II HUMMY ULE 5 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch-a 57-mile round-tripe 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 $182.80 (800 square feet a $22.85 per hundred square feet). Calculate the margin earned on this Job. 4 ants Complete this question by entering your answers in the tabs below. eBook Ask Required 1 Required 2 Required 3 Required 4 Print References Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Cleaning carpets Travel to jobs Job support per hundred square feet per mile per job Taw II Suomi Check 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 800 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 $182.80 (800 square feet @ $22.85 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 800 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.) Cost of the job Help Save & Exit Sut 5 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 800 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 $182.80 (800 square feet o $22.85 per hundred square feet). Calculate the customer margin earned on this job. ts Book Complete this question by entering your answers in the tabs below. Ask Print Required 1 Required 2 Required 3 Required 4 Terences The revenue from the Flying N Ranch was $182.80 (8 hundred square feet $22.85 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 w