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 $22.25 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 for the Year Activity Cost Pool Activity Measure Cleaning carpets Square feet cleaned (00s) 14,500 hundred square feet 398,500 miles Travel to jobs Miles driven 1,600 jobs Job support Number of jobs Other (costs of idle capacity and Not applicable organization-sustaining costs) None The total cost of operating the company for the year is $343.000, which includes the following costs 138,000 Wages Cleaning supplies 33,000 Cleaning equipment depreciation 10.000 Vehicle expenses 25,000 Office expenses 62,000 President's compensation 75,000 343,000 Total cost