Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5] 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 $22.75 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 actlvity cost pools. The activity cost pools and thelr actlvity measures appear below: 1 The total cost of operating the company for the year is $342,000 which Includes the following costs: Resource consumption is distributed across the activities as follows: Job support consists of receIving calls from potentlal customers at the home office, scheduling Jobs, billing, resolving issues, and so on. Requlred: 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 52-mile round-trip Journey from the company's offices In Bozeman. Compute the cost of this job using the actlvity-based costing system. 4. The revenue from the FlyIng N Ranch was $91.00 (400 square feet @ $22.75 per hundred square feet). Calculate the customer margin earned on this job