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 $24.05 per hundred square feet. However, there is some question about whether the company is actually making any money onjobs 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 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: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 7,500 hundred square feet Travel to jobs Miles driven 139,000 miles Job support Number of jobs 1,700 jobs Other (organizationsustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $351,000 which includes the following costs: Wages $ 150,000 Cleaning supplies 21,000 Cleaning equipment depreciation 14,000 Vehicle expenses 35,000 Office expenses 60,000 President's compensation 71,000 Total cost $ 351,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other Total Wages 74% 12% 0% 14% 100% Cleaning supplies 100% 0% 0% 0% 100% Cleaning equipment depreciation 72% 0% 0% 28% 100% Vehicle expenses 0% 78% 0% 22% 100% Office expenses 0% 0% 56% 44% 100% President's compensation 0% 0% 28% 72% 100%