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 $22.95 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 summier 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 Measure Activity for the Year tivity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and 6,000 hundred square feet Square feet cleaned (00s) Miles driven 61,500 miles 2,100 jobs Nunber of jobs None Not applicable idle capacity costa) The total cost of operating the company for the year is $373,000 which includes the following costs Wagen Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President'B compensation Total cost 149,000 28,000 11,000 32,000 70,000 83,000 373,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel Job Prev 1 of 3 Next>