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Question: gallatin carpet cleaning is a small familyowned business operating out...

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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 $24.05 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customersparticularly those located on remote ranches that require considerable travel time. The owners 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 Cleaning carpets Travel to job:s Job support Other (organization-sustaining costs and Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Activity for the Year 9,500 hundred square feet 178,500 miles 2,100 jobs idle capacity costs) None Not applicable The total cost of operating the company for the year is $362,000 which includes the following costs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses Presidents compensation Total cost 139,000 29,000 11,000 31,000 70,000 82,000 $ 362,000 Resource consumption is distributed across the activities as follows Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets Jobs 11% Support Other 18% 0% 32% 20% to 71% 00% 68% 0% 0% 0% 0% 0% 0% 0% 55% 33% Total 100% 100% 100% 100% 100% 100% Wages Cleaning supplies 0% leaning equipment depreciation Vehicle expenses Office expenses Presidents compensation 80% 0% 0%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 200 square foot carpet-cleaning job at the Flying N ranch-a 54-mile round-trip journey from the companys offices in Bozeman. Compute the cost of this job using the activity-based costing system 4. The revenue from the Flying N ranch was $48.10 (200 square feet @ $24.05 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 2Required 3 Required 4 Prepare the first-stage allocation of costs to the activity cost pools Cleaning Carpets $98,690$15,290$ Job Travel to Jobs Support Other Total Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses Presidents compensation Total cost S 113,980 29,000 7,480 24,800 38,500 27,060 0 S 240,820 0 29,000 7,480 0 24,800 38,500 27,060 65,560 $ 0 $ 135,170$40,090 Required 1 Required 2>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 200 square foot carpet-cleaning job at the Flying N ranch-a 54-mile companys offices in Bozeman. Compute the cost of this job using the activity-based costing system 4. The revenue from the Flying N ranch was $48.10 (200 square feet @ $24.05 per hundred square feet). C margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Cleaning carpets Travel to jobs Job support Activity Rate 14.23 per hundred square feet 0.22 per mile $ 31.22 per job K Required 1 Required 3 >companys offices in Bozeman. Compute the cost of this job using the activity-based costing system 4. The revenue from the Flying N ranch was $48.10 (200 square feet @ $24.05 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required 4 The company recently completed a 200 square foot carpet-cleaning job at the Flying N ranch-a 54-mile round-trip journey from the companys offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.) Cost of the job < Required 2 Required 44. The revenue from the Flying N ranch was $48.10 (200 square feet@ $24.05 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 2Required 3Required 4 The revenue from the Flying N ranch was $48.10 (2 hundred square feet @ $24.05 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.) ustomer margin K Required 3 Required4

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