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Gallatin Carpet Cleaning is a smail, 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 $23.10 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 Cont Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (005) 11,000 hundred square feet Travel to jobs Miles driven 141,000 miles Job support Number of jobs 2,000 Jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $360,000 which includes the following costs: Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses ottice expenses President's compensation Total cost $ 149,000 24,000 17,000 26.000 64,000 80,000 $360,000 Jobs 160 Other Resource consumption is distributed across the activities as follows: Distribution of Benource Consumption Acrons notivities Cleaning Travel to Job Carpeta Support Total Wages Cleaning supplies 05 Cleaning equipment depreciation 720 Vehicle expenses 769 241 1001 office expenses President's compensation Job support consists of receiving calls from potential customers at the home office, scheduling Jobs, billing, resolving issues, and so 758 1000 ON 90 09 1001 1000 1000 01 281 ON ON 09 09 08 00 08 568 308 700 1001 1000 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 600 square foot carpet-cleaning Job at the Fiying N Ranch-57-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 $138.60 (600 square feet o $2310 per hundred square feet). Calculate the customer margin earned on this job

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