Requirements 1-4

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 $23.50 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 Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (80) 9.500 hundred square feet Travel to jobs Miles driven 367,000 miles Job support Number of Jobs 1,889 Jobs other organization-sustaining costs and Idle capacity costs) None Not applicable The total cost of operating the company for the year is $348,000 which includes the following costs. Wages $ 141,000 Cleaning Supplies 23,000 Cleaning equipment depreciation Vehicle expenses 6,000 office expenses 33,000 66,000 President's compensation 79.000 Total cost 5348,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Carpets Jobs Job Support Other Wages Total 71% 115 100% Cleaning supplies 100% ox 0% Cleaning equipnent depreciation 72% 28% 100% Vehicle expenses 15% 100% Office expenses 04 37 10 President's compensation 273 78 100% In castronciete of receivirale from natanti ricomore at the home office erhatiinihe hitinn rentuinn er anton 100% 0% 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. 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 56 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 $188.00 (800 square feet a $23.50 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required di Required 2 Required Required 4 Job Support Other Total Prepare the first stage allocation of costs to the activity cost pools Cleaning Travel to Jobs Carpets Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost Required 2 > Jobs billing, resolving ssues, and so 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 56-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 $188.00 (800 square feet a $23.50 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 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs per milo Job Support perjob Required 1 Required 3 > JUD support consists of receiving calls from potential customers at the home office, scheduling jobs, biling, resolving issues, and so 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 800 square foot carpet-cleaning job at the Flying N Ranch 56-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 $188.00 (800 square feet a $23.50 per hundred square feet). Calculate the customer margin earned on this job Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required The company recently completed a 800 square foot carpet cleaning job at the Flying N Ranch - 56-mile round-trip journey from the company's offices in Bozeman Compute the cost of this job using the activitybased costing system. (Round your intermediate calculations and final answer to 2 decimal places.) Cost of the job 27% Help 20 President's compensation Job support consists of receiving calls from potential customers at the home office, scheduling jobs, biling, resolving issues, and so 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 800 square foot carpet-cleaning job at the Flying N Ranch-a 56-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 $188.00 (800 square feet a $23.50 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 revenue from the Flying N Ranch was $188.00 (8 hundred square feet $23.50 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