Question 3 (Marks 35) 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 $28 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, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets .. w Square feet cleaned (00s) 20,000 hundred square feet Travel to jobs. Miles driven 80,000 miles Job support. Number of jobs 5,000 jobs Other (costs of idle capacity and organization-sustaining costs)... None Not applicable The total cost of operating the company for the year is $550,000, which includes the following costs: Wages $160,000 Cleaning supplies 40,000 Cleaning equipment depreciation 30,000 Vehicle expenses .. 90,000 Office expenses. 60,000 President's compensation 80,000 Total cost .. $460,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activities Cleaning Carpets Wages... 70% Cleaning supplies... 100% Cleaning equipment depreciation. 80% Vehicle expenses.. 0% Office expenses. 0% President's compensation. 0% Travel to Jobs 20% 0% 0% 60% 0% 0% Job Support 0% 0% 0% 0% 45% 40% Other 10% 0% 20% 40% 55% 60% Total 100% 100% 100% 100% 100% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Date: January 20, 2021 Faculty: Rkb Fall'20 Required: 1. The company recently completed a 5 hundred square foot carpet-cleaning job at the Flying N Ranch-a 75-mile round-trip journey from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. 2. The revenue from the Flying N ranch was $240 (5 hundred square feet @ $28 per hundred square feet). Prepare a report showing the margin from this job