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Gallatin Carpet Cleaning Is a small, family - owned business operating out of Bozeman, Montana. For Its services, the company nas always charged a flat
Gallatin Carpet Cleaning Is a small, familyowned business operating out of Bozeman, Montana. For Its services, the company nas 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 actually making any money on jobs for some customersparticularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using actlvitybased costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and thelr activity measures appear below:
Resource consumption Is distributed across the activitles as follows:
tabletableCleaningCarpetstableTrave to JobsJob,Support,Other,TotalWagesx
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