Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$13\mathrm{.}00$ per hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerable travel time. The owner$$s daughter suggested$$answering this question by designing an activity$-$based costing system using the information shown below:

Activity Cost PoolActivity MeasureActivity for the YearCleaning carpetsSquare feet cleaned $(00$s$)9,500$hundred square feetTravel to jobsMiles driven$109,500$milesJob supportNumber of jobs$2,300$jobsOther $($organization$-$sustaining costs and idle capacity costs$)$NoneNot applicable

The total cost of operating the company for the year is $$354,000$ which includes the following costs:

Wages$ $138,000$Cleaning supplies$24,000$Cleaning equipment depreciation$19,000$Vehicle expenses$30,000$Office expenses$67,000$President$$s compensation$76,000$Total cost$ $354,000$

She distributed these operating costs across her four activities as follows:

Distribution of Resource Consumption Across Activities$$Cleaning CarpetsTravel to JobsJob SupportOtherTotalWages$75\%11\%0\%14\%100\%$Cleaning supplies$100\%0\%0\%0\%100\%$Cleaning equipment depreciation$65\%0\%0\%35\%100\%$Vehicle expenses$0\%80\%0\%20\%100\%$Office expenses$0\%0\%55\%45\%100\%$President$$s compensation$0\%0\%32\%68\%100\%$

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on$.$

Required:

Prepare the first$-$stage allocation of costs to the activity cost pools.

Compute the activity rates for the activity cost pools.

The company recently completed a $600-$square$-$foot carpet$-$cleaning job at the Flying N Ranch$$a $55-$mile round$-$trip from the company$$s home office. Compute the cost of this job using the activity$-$based costing system.

The revenue from the Flying N Ranch was $$78\mathrm{.}00(600$ square feet @ $$13\mathrm{.}00$ per hundred square feet$).$ Calculate the customer margin earned on this job.