Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5] Gallatin Carpet Cleaning is a 5 mall, famly-owned business operating out of Bozeman, Montana. For its services, the company has aiways charged a flat fet per hundred square feet of carpet cleaned. The current fee is $23.55 per hundred square feet Hownever there is somve queston obout whethes the company is actially making any money on jobs for some custorness - particularty those locited on femote ranches that reguire considerable travel time. The owner's daughter, home for the summer from college, has sucgested investigating this question using activity based costing After some discussion, she designed a finple system consasting four activity cost pools. The activity cost pocks and their activity measures appear beiow: The total cost of operating the company for the year is $340,000 which includes the following costs Regource consumption is distributed across the activities as follows on Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and 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 54 -mile round-frip joumey fron 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 $94.20 (400 square feet $23.55 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