mework

Gallatin Carpet Cleaning is a small, family$-$owned business operating out of Bozeman, Montana. For its services, the company always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$22\mathrm{.}45$ per hundred square feet. Howe there is some question about whether the company is actually making any money on jobs for some customers$-$particularly tho 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 consis four activity cost pools. The activity cost pools and their activity measures appear below:

$\backslash$table$[[$Activity Cost Pool,Activity Measure,Activity for the Year$],[$Cleaning carpets,Square feet cleaned $(0s),7,500$ hundred square feet$],[$Travel to jobs,Miles driven,$429,500$ miles$],[$Job support,Number of jobs,$1,900$ jobs$],[\backslash$table$[[$Other $($organization$-$sustaining costs and idle$],[$capacity costs$)]],$None,Not applicable$]]$

The total cost of operating the company for the year is $$365,000$ which includes the following costs:

$\backslash$table$[[$Wages$,$$$148,000$

$(-)$ You

Gallatin Carpet Cleaning is a small, family$-$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 $$22\mathrm{.}45$ 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 of four activity cost pools. The activity cost pools and their activity measures appear below:

$\backslash$table$[[$Activity Cost Pool,Activity Measu$],[$Cleaning carpets,Square feet cl$],[$Mravel to jobs,Miles driven$],[$Number of jobs,$],[$Job support,$],[$Other $($organization$-$sustaining costs and idle,$],[$capacity costs$),],[,],[$The total cost of operating the company for the year is $$365,000,],[,148,000],[$Wages$,32,000],[$Cleaning supplies,$15,000],[$Cleaning equipment depreciation,$37,000],[$Vehicle expenses,$58,000],[$Office expenses,$75,000],[$President$\text{'}$s compensation,$$365,000$