Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$13\mathrm{.}20$ per hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerable travel time. The owner$$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$)10,500$hundred square feetTravel to jobsMiles driven$172,000$milesJob supportNumber of jobs$2,600$jobsOther $($organization$-$sustaining costs and idle capacity costs$)$NoneNot applicable

The total cost of operating the company for the year is $$355,000$ which includes the following costs:

Wages$ $147,000$Cleaning supplies$25,000$Cleaning equipment depreciation$17,000$Vehicle expenses$28,000$Office expenses$63,000$President$$s compensation$75,000$Total cost$ $355,000$

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

Distribution of Resource Consumption Across Activities$$Cleaning CarpetsTravel to JobsJob SupportOtherTotalWages$73\%15\%0\%12\%100\%$Cleaning supplies$100\%0\%0\%0\%100\%$Cleaning equipment depreciation$64\%0\%0\%36\%100\%$Vehicle expenses$0\%84\%0\%16\%100\%$Office expenses$0\%0\%57\%43\%100\%$President$$s compensation$0\%0\%29\%71\%100\%$

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 $400-$square$-$foot carpet$-$cleaning job at the Flying N Ranch$$a $54-$mile round$-$trip from the company$$s home office. Compute the cost of this job using the activity$-$based costing system.

The revenue from the Flying N Ranch was $$52\mathrm{.}80(400$ square feet @ $$13\mathrm{.}20$ per hundred square feet$).$ Calculate the customer margin earned on this job.