Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet However there is some question about whether the company is actually making any money on jobs for some customers-particularly 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 activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below 40 Cleaning carpets travel to jobs quare g 343,000 miles 1,600 jobs Number of jobs idle capacity costs) The total cost of operating the company for the year is $364,000 which includes the following costs: 147,000 26.000 8,000 37,000 66,000 equipsent Office expenses President's Total cost Resource consumption is distributed across the activities as follows: cleaning Travel 701 10%