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Gallatin Carpet Cleanng is a small, famlly-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 $22.25 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 questlon using actlvity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The actlvity cost pools and thelr actlvity measures appear below: The total cost of operating the company for the year is $379,000 which includes the following costs: Resource consumption is distributed across the actlvitles as follows: Job support consists of recelving calls from potentlal customers at the home office, scheduling Jobs, billing, resolving Issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the actlvity cost pools. 2. Compute the actlvity rates for the actlivity cost pools. 3. The company recently completed a 800 square foot carpet-cleanlng Job at the FlyIng N Ranch-a 59-mile round-trip journey from the company's offices in Bozeman. Compute the cost of this job using the actlvity-based costlng system. 4. The revenue from the Flylng N Ranch was $178.00 (800 square feet @ $22.25 per hundred square feet). Calculate the customer margin earned on this job

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