070 points Gallatin Carpet cleaning is a small, family-owned business operating out of Bozeman, its services, the company h a hundred feet of carpet cleaned The However current fee is $22.70 per hundred square feet. there is some question about whether the remote company is actually making any money on jobs for some those located on considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their appear Activity for the Year Activity Measure Activity Cost Pool Square feet cleaned (00s) 10.000 hundred square feet Cleaning carpets 235.000 miles Miles driven Travel to jobs 1,800 jobs Number of jobs Job support Other (costs of idle capacity and Not applicable None organization-sustaining costs) The total cost of operating the company for the year is $361.000, which includes the following costs: 145,000 Wages 33,000 Cleaning supplies Cleaning equipment depreciation 8,000 31,000 Vehicle expenses 64 000 Office expenses 80,000 President's compensation Total cost $361,000 Resource consumption is distributed across the activities as follows Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Other Total 11% 100% Cleaning supplies. 100% 0% 100% Cleaning equipment depreciation 29% 100% Vehicle expenses 18% 100% Office expenses 60% 100% compensation