Question: Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $13.75 per hundred square feet

 Gallatin Carpet Cleaning has always charged a flat fee per hundred
square feet of carpet cleaned. The current fee is $13.75 per hundred

Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $13.75 per hundred square feet However, there is some question about whether the company is making a profit on jobs requiring considerabie travel time. The owner's daughter suggested answering this question by designing on activity-based costing system using the information shown below The total cost of operating the company for the year is $351,000 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 ot the home office, scheduling jobs, billing, resolving issues, a on on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 200 -square-foot carpet-cleaning job at the Flying N Ranch-a 53 -mile round-trip from company's home office. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $27.50 (200 square feet @ $13.75 per hundred square feet). Calculate the cust margin earned on this job

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