Please write neatly and label final answers clearly. Thank you.

Problems 3-4

a small, family-owned business operating out of Bozeman, Montana. F Gallatin Carpet Cleaning is its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.75 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, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: tivity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 14,000 hundred square feet Travel to jobs Miles driven 351.000 miles Job support Number of jobs 1,700 jobs Other (costs of idle capacity and organization-sustaining costs) None Not applicable The total cost of operating the company for the year is $366,000, which includes the following costs: Wages 144,000 Cleaning supplies 32,000 Cleaning equipment depreciation 16,000 Vehicle expenses 31.000 Office expenses 64,000 President's compensation 79,000 Total cost 366,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Jobs Support Other Total Wages 73% 13% 0% 14% 100% Cleaning supplies 100% 0% 0% 0% 100% Cleaning equipment depreciation 70% 0% 0% 30% 100% 82% Vehicle expenses 0% 0% 18% 100% Office expenses 0% 0% 61% 39% 100% President's compensation 0% 0% 33% 67% 100% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on