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Problem 7-20 (Algo) Evaluating the Profltablllty of Services [LO7-2, LO7.3, LO7.4, LO7-5] Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montans. For its services, the company has alwoys charged a flat fee per hundred square feet of carpet clesned. The current fee is $23.65 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 trovel time. The owner's doughter, home for the summer from college, has suggested investigating this question using activity-bosed costing. After some discussion, she designed a simple system consisting of four activity cost pools. The octivity cost pools and their sctivity messures appeor below: The total cost of operating the compsny for the yes is $367,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepse the first-stage allocation of costs to the activity cost pools. 2. Compute the activity retes for the activity cost pools. 3. The company recently completed 840 square foot corpet-clesning job at the Flying N Ranch-s 59 -mile round-trip journey from the compony's offices in Bozeman. Compute the cost of this job using the activity-bosed costing system. 4. The revenue from the Flying N Ranch was $94.60 (400 square feet @ $23.65 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Prepare the first-stage allocation of costs to the activity cost pools. Problem 7-20 (Algo) Evaluating the Profltabllity of Services [LO7-2, LO7-3, LO7-4, LO7-5] Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montens. For its services, the company has always charged a flat fee per hundred square feet of carpet clesned. The current fee is $23.65 per hundred square feet. However, there is some question about whether the compsny is actually making any money on jobs for some customers-psrticularly those located on remote ranches that require considerable trovel time. The owner's doughter, home for the summer from college, has suggested investigating this question using activity-bosed costing. After some discussion, she designed a simple system consisting of four activity cost pools. The octivity cost pools and their activity messures appear below: The total cost of operating the compony for the year is $367,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Job support consists of receiving calls from potentisl customers ot the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepsere the first-stege allocation of costs to the activity cost pools. 2. Compute the activity rates for the sctivity cost pools. 3. The company recently completed a400 square foot carpet-clesning job ot the Flying N Ranch-a 59 -mile round-trip journey from the compony's offices in Bozeman. Compute the cost of this job using the activity-bosed costing system. 4. The revenue from the Flying N Ranch wos $94.60 (400 square feet @ $23.65 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Problem 7.20 (Algo) Evaluating the Profitabillty of Services [LO7-2, LO7.3, LO7.4, LO7.5] Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montans. For its services, the company has always charged a flat fee per hundred square feet of carpet clesned. The current fee is $23.65 per hundred square feet. However, there is some question about whether the compeny is actually making any money on jobs for some customers-perticularly those locoted on remote ranches that require considerable trovel time. The owner's doughter, home for the summer from college, has suggested investigsting this question using octivity-bosed costing. After some discussion, she designed a simple system consisting of four activity cost pools. The octivity cost pools and their sctivity messures appear below: The total cost of operating the company for the year is $367,000 which includes the following costs: Resource consumption is distributed across the octivities as follows: Job support consists of receiving calls from potentisl customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stege allocation of costs to the activity cost pools. 2. Compute the octivity retes for the sctivity cost pools. 3. The company recently completed a400 square foot carpet-clesning job at the Flying N Ranch-s 59 -mile round-trip journey from the compony's offices in Bozeman. Compute the cost of this job using the activity-bosed costing system. 4. The revenue from the Flying N Ranch was $94.60 (400 square feet @ $23.65 per hundred square feet). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch-a 59 -mile round-trip joumey from the company's offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.) Problem 7.20 (Algo) Evaluating the Profitability of Servlces [LO7.2, LO7.3, LO7.4, LO7.5] Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montans. For its services, the company has alwoys charged a flat fee per hundred square feet of carpet clesned. The current fee is $23.65 per hundred square feet. However, there is some question about whether the compeny is actually making any money on jobs for some customers-particularly those located on remote ranches thet require considerable travel time. The owner's doughter, home for the summer from college, has suggested investigating this question using octivity-bosed costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity messures appear below: The total cost of operating the compsny for the yes is $367,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Job support consists of receiving calls from potentisl customers ot the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepore 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 400 square foot carpet-clesning job at the Flying N Ranch-a 59-mile round-trip journey from the compony's offices in Bozeman. Compute the cost of this job using the activity-bosed costing system. 4. The revenue from the Flying N Ranch was $94.60 (400 square feet @ $23.65 per hundred square feeti). Calculate the customer margin earned on this job. Complete this question by entering your answers in the tabs below. The revenue from the Flying N Ranch was $94.60 (4 hundred square feet $23.65 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)