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 $12.70 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 (00s) Kilometres driven Number of jobs None Activity for the Year 40,600 hundred square metres 28,520 kilometres 160 jobs NA The total cost of operating the company for the year is $495,000, which includes the following costs: Wages Supplies Snow removal equipment depreciation Vehicle expenses office expenses President's compensation Total cost $192,000 47,000 27,000 47,000 74,000 108,000 $495,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption. across Activity Cost Pools Snow Travel to Job Removal Jobs Support Other Total Wages 70% 208 08 10% 100% Supplies 100% 0% 0% 0% 1008 Snow removal equipment depreciation 80% 08 01 20% 100% Vehicle expenses 08 70% 01 30% 100% office expenses 08 0% 40% 60% 100% President's compensation 08 09 45% 558 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.