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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 . 7

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 considerable travel time. The owner's daughter suggested answering this question by designing an activity-based costing system using the information shown below.
\table[[Activity cost Pool,Activity Measure,Activity for the Year],[Cleaning carpets,Square feet cleaned (00s),13,000 hundred square feet],[Travel to jobs,Miles driven,234,500 miles],[\table[[Job support],[other (organization-sustaining costs and idle]],Number of jobs,2,200 jobs],[capacity costs),None,Not applicable]]
The total cost of operating the company for the year is $339,000 which includes the following costs:
\table[[Wages,$137,000
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