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Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $ 1 3 . 1
Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $ 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 activitybased costing system using the information shown below:
tableActivity Cost Pool,Activity Measure,Cleaning carpets,Square feet cleaned sActivity for the YearTravel to jobs,Miles driven, hundred square feetJob support,Number of jobs, milesOther organizationsustaining costs and,, jobstableidle capacity costsNoneNot applicable,
The total cost of operating the company for the year is $ which includes the following costs:
tableWages$
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