They said to ask the other part of question in another request? **Gallatin Carpet Cleaning: An Activity-Based Costing Analysis**Gallatin Carpet Cleaning is a small, family-owned business based in Bozeman, Montana. The company charges a flat fee of $22.25 per hundred square feet for its carpet cleaning services. Concerns have arisen regarding profitability, especially for clients located on remote ranches that require significant travel time. In response, an initial system to assess costs more accurately was designed, incorporating four activity cost pools.### Activity Cost Pools1. **Cleaning Carpets** - **Activity Measure:** Square feet cleaned - **Activity for the Year:** 13,500 hundred square feet2. **Travel to Jobs** - **Activity Measure:** Miles driven - **Activity for the Year:** 300,000 miles3. **Job Support** - **Activity Measure:** Number of jobs - **Activity for the Year:** 1,700 jobs4. **Other (Organization-sustaining costs and idle capacity costs)** - No applicable activity measure### Total Operating CostsThe total cost to operate the business for one year is $347,000, with the following expense breakdown:- **Wages:** $144,000- **Cleaning Supplies:** $32,000- **Cleaning Equipment Depreciation:** $8,000- **Vehicle Expenses:** $26,000- **Office Expenses:** $56,000- **President's Compensation:** $81,000### Resource Consumption Across ActivitiesA detailed distribution of resources used across the activities is provided:- **Wages:** - Cleaning Carpets: 43% - Travel to Jobs: 11% - Job Support: 36% - Other: 10%- **Cleaning Supplies:** - Cleaning Carpets: 100% - Travel to Jobs: 0% - Job Support: 0% - Other: 0%- **Cleaning Equipment Depreciation:** - Cleaning Carpets: 100% - Travel to Jobs: 0% - Job Support: 0% - Other: 0%- **Vehicle Expenses:** - Cleaning Carpets: 0% - Travel to Jobs: 81% - Job Support: 19% - Other: 0%- **Office Expenses:** - Cleaning Carpets: 0% - ### Distribution of Resource Consumption Across Activities#### Breakdown:- **Wages** - Cleaning: 78% - Travel to Jobs: 11% - Job Support: 0% - Other: 11% - Total: 100%- **Cleaning Supplies** - Cleaning: 100% - Travel to Jobs: 0% - Job Support: 0% - Other: 0% - Total: 100%- **Cleaning Equipment Depreciation** - Cleaning: 70% - Travel to Jobs: 0% - Job Support: 0% - Other: 30% - Total: 100%- **Vehicle Expenses** - Cleaning: 0% - Travel to Jobs: 81% - Job Support: 0% - Other: 19% - Total: 100%- **Office Expenses** - Cleaning: 0% - Travel to Jobs: 0% - Job Support: 64% - Other: 36% - Total: 100%- **President's Compensation** - Cleaning: 0% - Travel to Jobs: 0% - Job Support: .33% - Other: 67% - Total: 100%### Job Support Definition:Job support includes activities such as receiving calls from potential customers at the home office, scheduling jobs, billing, and resolving issues.### Requirements:1. **First-Stage Allocation of Costs** - Prepare the allocation of costs to the activity cost pools.2. **Activity Rate Computation** - Compute the activity rates for the activity cost pools.3. **Job Cost Computation** - Calculate the cost of the 200 square foot carpet-cleaning job at the Flying N Ranch (a 55-mile round trip from the company's offices in Bozeman) using the activity-based costing system.4. **Revenue and Margin Calculation** - Determine the margin earned on the job, given the revenue from the Flying N Ranch was $44.50 (200 square feet @ $22.25 per hundred square feet).**Step-by-Step Input:**- Complete the section by entering responses in the specified tabs for each requirement.**Activity Cost Pool Table (for Completing Required 2):**- **Headings:** - Activity Cost Pool - Activity Rate- **Input

Solution:-1 Allocation of costs to the activity cost pools Particulars Cleaning carpets…

Answered: Requlred: 1. Prepare the first-stage…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Particulars	Cleaning carpets	Travel to jobs	Job support	Other	Total
Wages	(144,0007*8%) $112,320	(144,0001*1%) $15,840	-	(144,00011%) $*15,840	$144,000
Cleaning supplies	$32,000	-	-	-	$32,000
Cleaning equipment depreciation	(8,00070%) $5,600*	-	-	(8,00030%) $2,400*	$8,000
Vehicle expenses	-	(26,00081%) $21,060*	-	(26,00019%) $4,940*	$26,000
Office expenses	-	-	(56,00064%) $35,840*	(56,00036%) $20,160*	$56,000
President's compensation	-	-	(81,00033%) $26,730*	(81,00033%) $54,270*	$81,000
Total	$149,920	$36,900	$62,570	$97,610	$347,000