Saved Help Save 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 $23.65 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 o four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpeto Square feet cleaned (008) 10,500 hundred square feet Travel to jobs Miles driven 123, 500 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle capacity costs) Not applicable None The total cost of operating the company for the year is $355,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation Total cost $ 144,000 20,000 14,000 33,000 69,000 75,000 $ 355,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activities Cleaning Travel Carpets to Jobs Wages 795 15 Job Support 00 Other 68 Total 1009 Saved Help Save & CH Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages 798 158 Cleaning supplies 1008 00 Cleaning equipment depreciation 735 ON Vehicle expenses OR 760 Office expenses 0 08 President's compensation 08 ON Job Support 08 08 08 08 588 308 Other 68 08 278 240 428 700 Total 1008 100 1008 1000 100% 1000 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 400 square foot carpet-cleaning job at the Flying N Ranch-a 54-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 $94.60 (400 square feet @ $23.65 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 Prepare the first-stage allocation of costs to the activity cost pools. Cleaning Travel to Job Support Carnets Johs Other Total