gallatin carpet is a

Galatin Carpet cleaning isa small, family-owned business operating out of Bozeman, Montana. For its services, the company has ahways charged a flat fee per hundred square feet of carpet cleaned. The current fee is$22.70 per hundred square feet. However, there is some question about whether the company is actualy 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 colege, 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 Activity Cost Pool ty for the Ye Square feet ceaned (00s) 10,000 hundred square feet Cleaning carpets 235,000 miles Miles driven Travel to jobs 1,800 jobs Number of jobs Job support Other (costs of idle capacity and Not applicable organization-sustaining costs) None The total cost of operating the company for the year is $361,000, which includes the following costs: 145,000 Wages 33,000 Cleaning supplies Cleaning equipment depreciation 8,000 31.000 Vehicle expenses 64,000 Office expenses 80,000 Presidents compensation 361.000 Total cost