Gallatn Carpet Cleaning is a small, famly-owned business operating out of Bozeman, Montana For its services, the comparny has always charged a fat tee per hundred square leet of carpet cleaned. The current foe is $23 45 per hundred square leet However, there is some question about whether the company is actualy making any money on jobs for some customers-particularly those located on remole ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigaing this question using activity based costing After some discussion, a simplk system consisting of tour actvity cost pools seemed to be adequate. The activity cost pools and their actvity measures appear below Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (costs of idlo capacity and Activity Measure Square feet cleaned (00s) Mles drven Number of jobs 10,500 hundred square feet 274,500 mles 1,700 jobs organization sustaining costs) Not applicable The total cost ot operating the company for the year is $373,000, which includes the following costs Wages Cleaning supplies Cleaning equipment depreciation 16,000 Vehicle expenses 145,000 35,000 Office expenses President's compensation 28.000 69 000 82,000 Total cost 373,000 Resource consumpton is distibuted across the activities as follows