Required:

1) 1st Stage Allocation of costs to activity cost pools

2) Compute activity rates for the activity cost pools

3) Compute cost of job using activity-based method

4) {The Revenue from the flying N ranch was $190.00(800 square feet @ 23.75 per hundred square feet). Calculate the customer margin earned on this job}

5 saienn always charged a flat foe per hundred square feet of carpet cleaned. The current fee is $2375 per hundred square feet. However, located on remote ranc 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 uarpet Gieaning is a smai, Tamir-owned business operetng out or Bozeman, montana. For its services, tne company nas whether the company is actually meking any money on jobs for some customers-particulartly those hes that require considerable travel time. The owner's daughter, home for the summer from college, has points Cleaning carpets Equare feet eleaned (00s) Kiles driven 12,500 hundred square feet 122,500 miles Job support other (organisation-sustaiaing costs and eBook Bumber of jobs 2,100 jobs idle enpacity coste) Hot applicable Prins The total cost of operating the company for the year is $354,000 which includes the following costs Cleaning supplies Cleaning equipeeet depreciation Vehicle expensers Office expenses Prenident'scompensatlon Total cost 136,000 35,000 10,000 36,000 63,000 74,000 $354, 000 Resource consumption is distributed across the activities as follows ois tribution of Resource Consumpt.ion Across Activities Cleaning Travel Job Total Nages Cleaning supplies cleaning equipment depreciation vehicle xpense Office expenses Prenidentle co 746 1001 68s 04 151 0% 329 564 29M44 ation 01 100 Job support consists of recelving 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 Compute the activity rates for the activity cost pools 3. The company recently completed o 800 square foot carpet-cleaning job at the Flying N ranch-a 55-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 Fvino N ranch wos $19000 1800 square feet o $23.75 per hundred souare feet. Calculate the customer