Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.75 per hundred square there is some question about whether the company is actually making any money on jobs for some customers-part located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from suggested investigating this question using activity-based costing. After some discussion, she designed a simple sys four activity cost pools. The activity cost pools and their activity measures appear below Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and Activity Measure Square feet cleaned (00s) Miles driven Number of iobs Activity for the Year 9,000 hundred square f 124,000 miles 1,800 jobs idle capacity costs) None Not applicable The total cost of operating the company for the year is $343,000 which includes the following costs wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation $ 141,000 22,000 13,000 33,000 55, 000 79,000 $ 343,000 Resource consumption is distributed across the activities as follows