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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 4 . 0
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,Activity for the YearCleaning carpets,Square feet cleaned s hundred square feetTravel to jobs,Miles driven, milestableJob supportOther organizationsustaining costs andidle capacity coststableNumber of jobsNonetable jobsNot applicable
The total cost of operating the company for the year is $ which includes the following costs:
tableWages$
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