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 $22.10 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, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Activity Measure Activity for the Year Square feet cleaned (00s) 14,500 hundred square feet 329,000 miles Miles driven Job support Number of jobs 1,600 jobs Other (costs of idle capacity and organization-sustaining costs) None Not applicable The total cost of operating the company for the year is $352,000, which includes the following costs: Wages 140,000 Cleaning supplies 26,000 Cleaning equipment depreciation 13,000 Vehicle expenses 38,000 Office expenses 65,000 President's compensation 0,000 Total cost 352,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Other Tota Wages 75% 13% 0% 12% 100% Cleaning supplies 100% Cleaning equipment depreciation 71% Vehicle expenses 0% Office expenses 0% President's compensation 0% 0% 0% 0% 100% 0% 0% 29% 100% 78% 0% 22% 100% 0% 57% 43% 100% 0% 31% 69% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on