Seven Suome Problem 7-20 (Algo) Evaluating the Profitability of Services (L07-2, L07-3, L07-4, LO7.5] y Gallatin Carpet Cleaning is a small family-owned business operating out of Bozeman Montana Fories services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $2330 per hundred scare feet How there is some question about whether the company is actually making any money on jobs for some customers-party located on remote ranches that require considerable travel time. The owner's daughter, home for the summer om college has suggested investigating this question using activity-based costing Aher some discussion, she designed a simple system como four activity cost pools. The activity cost pools and their activity measures appear below Activity Cost Pool Activity Measure Cleaning Carpets Sour feet cleaned . Travel to Jobs even Job Support berobe Other (organization-star costs and lite Capacity costs) Home The total cost of operating the company for the years 5360.000 which includes the fico Cleaning up Centrale deprem Vehicle coses officer Presidents contain toscout 144.000 18:00 11.00 . 000 CP Return to question Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages Box 16 Cleaning supplies 100 Cleaning equipment depreciation 74% Vehicle expenses 521 office expenses President's compensation ox Total 8888888 Job Support Other a 45 03 ON 265 or 183 57% 43 281 100% toes 100% 100% 100% Job support consists of receiving 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 400 square foot carpet-cleaning job at the Flying N Ranch 59 de round me journey from the company's offices in Bozeman Compute the cost of this job using the activity-based costing systems 4. The revenue from the Flying N Ranch was $93.20 1400 square feet 523 30 per hundred square fee Colculate the customer margin earned on this job Seven Suome Problem 7-20 (Algo) Evaluating the Profitability of Services (L07-2, L07-3, L07-4, LO7.5] y Gallatin Carpet Cleaning is a small family-owned business operating out of Bozeman Montana Fories services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $2330 per hundred scare feet How there is some question about whether the company is actually making any money on jobs for some customers-party located on remote ranches that require considerable travel time. The owner's daughter, home for the summer om college has suggested investigating this question using activity-based costing Aher some discussion, she designed a simple system como four activity cost pools. The activity cost pools and their activity measures appear below Activity Cost Pool Activity Measure Cleaning Carpets Sour feet cleaned . Travel to Jobs even Job Support berobe Other (organization-star costs and lite Capacity costs) Home The total cost of operating the company for the years 5360.000 which includes the fico Cleaning up Centrale deprem Vehicle coses officer Presidents contain toscout 144.000 18:00 11.00 . 000 CP Return to question Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Carpets to Jobs Wages Box 16 Cleaning supplies 100 Cleaning equipment depreciation 74% Vehicle expenses 521 office expenses President's compensation ox Total 8888888 Job Support Other a 45 03 ON 265 or 183 57% 43 281 100% toes 100% 100% 100% Job support consists of receiving 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 400 square foot carpet-cleaning job at the Flying N Ranch 59 de round me journey from the company's offices in Bozeman Compute the cost of this job using the activity-based costing systems 4. The revenue from the Flying N Ranch was $93.20 1400 square feet 523 30 per hundred square fee Colculate the customer margin earned on this job