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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],[Cleaning carpets,Square feet clean],[Travel to jobs,Miles driven],[Job support,Number of jobs],[Other (organization-sustaining costs and,],[idle capacity costs),None],[,],[The total cost of operating the company for the year is $372,000 which,],[,149,000],[Wages,23,000],[Cleaning supplies,14,000],[Cleaning equipment depreciation,36,000],[Vehicle expenses,72,000],[Office expenses,78,000],[President's compensation,$372,000
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