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 $23.05 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 Measure Square feet cleaned (00s) Miles driven Number of jobs Activity for the Year 7,000feet 2,000 jobs Activity Cost Pool hundred square Cleaning carpets Travel to jobs Job support Other (costs of idle capacity 387,000 miles and organization-sustaining costs) None Not applicable The total cost of operating the company for the year is $358,000, which includes the following costs 143,000 Wages Cleaning supplies Cleaning equipment Vehicle expenses Office expenses President's compensation 29,000 11,000 60,000 84,000 depreciation 31,000 358,000 Total cost