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In: AccountingGallatin CarpetCleaning is a small, family-owned business operating out ofBozeman, Montana. For its services,...Gallatin CarpetCleaning is a small, family-owned business operating out ofBozeman, Montana. For its services, the company has always chargeda flat fee per hundred square feet of carpet cleaned. The currentfee is $22.95 per hundred square feet. However, there is somequestion about whether the company is actually making any money onjobs for some customers—particularly those located on remoteranches that require considerable travel time. The owner’sdaughter, home for the summer from college, has suggestedinvestigating this question using activity-based costing. Aftersome discussion, she designed a simple system consisting of fouractivity cost pools. The activity cost pools and their activitymeasures appear below:Activity CostPoolActivityMeasureActivity for theYearCleaningcarpetsSquare feetcleaned (00s)6,000hundred square feetTravel tojobsMilesdriven439,500milesJob supportNumber ofjobs1,600jobsOther(organization-sustaining costs and idle capacity costs)NoneNotapplicableThe total cost ofoperating the company for the year is $357,000 which includes thefollowing costs:Wages$139,000Cleaningsupplies28,000Cleaningequipment depreciation17,000Vehicleexpenses31,000Officeexpenses64,000President’scompensation78,000Total cost$357,000Resource consumptionis distributed across the activities as follows:Distribution of Resource Consumption Across ActivitiesCleaning CarpetsTravel to JobsJob SupportOtherTotalWages73%10%0%17%100%Cleaningsupplies100%0%0%0%100%Cleaningequipment depreciation72%0%0%28%100%Vehicleexpenses0%83%0%17%100%Officeexpenses0%0%59%41%100%President’scompensation0%0%30%70%100%Job support consistsof receiving calls from potential customers at the home office,scheduling jobs, billing, resolving issues, and so on.Required:1. Prepare thefirst-stage allocation of costs to the activity cost pools.2. Compute theactivity rates for the activity cost pools.3. The companyrecently completed a 200 square foot carpet-cleaning job at theFlying N Ranch—a 52-mile round-trip journey from the company’soffices in Bozeman. Compute the cost of this job using theactivity-based costing system.4. The revenue fromthe Flying N Ranch was $45.90 (200 square feet @ $22.95 per hundredsquare feet). Calculate the customer margin earned on this job.PLEASE HELP!!