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 $23.60 per hundred square feet. H ver, there is some question about whether the is actually making any money on jobs for some cust ticularly 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: ty Cost Pool Cleaning carpets Travel to jobs Job support Other (costs of idle capacity and organization-sustaining costs) Square feet cleaned (00s) Miles driven 12,000 hundred square feet 172,500 miles Number of jobs 2,000 jobs Not applicable The total cost of operating the company for the year is $337.000, which includes the following costs Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation $ 145,000 26,000 8,000 28,000 57,000 73,000 Total cost $ 337,000