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Gallatin Carpet Cleaning is a small, famlly-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per

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Gallatin Carpet Cleaning is a small, famlly-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 $23.90 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, she designed a simple system consisting four activity cost pools. The activity cost pools and their activity measures appear below: The total cost of operating the company for the year is $355,000 which includes the following costs: Resource consumption is distributed across the activities as follows: Gallatin Carpet Cleaning is a small, famlly-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 $23.90 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, she designed a simple system consisting four activity cost pools. The activity cost pools and their activity measures appear below: The total cost of operating the company for the year is $355,000 which includes the following costs: Resource consumption is distributed across the activities as follows

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