Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$13\mathrm{.}70$ 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:

The total cost of operating the company for the year is $$352,000$ which includes the following costs:

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

Job support consists of recelving 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 $200-$square$-$foot carpet$-$cleaning job at the Flying N Ranch$-$a $57-$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 $$27\mathrm{.}40(200$ square feet $>$$$13\mathrm{.}70$ per hundred square feet$).$ Calculate the customer

margin earned on this job.

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