Kenosha Winter Services is a small family$-$owned snow$-$removal business. For its services, the company has always charged a flat fee

per hundred square metres of snow removal. The current fee is $$12\mathrm{.}75$ per hundred square metres. However, there is some question

about whether the company is actually making any money on jobs for some customers$-$particularly those located on more remote

properties that require considerable travel time. The owner's daughter, home from school for the summer, has suggested investigating

this question using ABC. 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 Cost Pool

Snow removal

Travel to jobs

Job support

other $($costs of idle capacity and organization$-$sustaining

costs$)$

Activity Measure

Square metres cleaned $($e$$s$)$

Kilometres driven

Number of jobs

None

Activity for the Year

$32,00$ hundred square metres

$15,090$ kilometres

$49$ jobs

NA

The total cost of operating the company for the year is $$390,000,$ which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing. resolving issues, and so

on$.$