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Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5] Gallatin Carpet Cleaning i a small, family-owned business operating out of Bozeman, Montana.

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Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5] Gallatin Carpet Cleaning i a small, family-owned business operating out of Bozeman, Montana. For ils servicos, the company has always charged a flat fee per hundred square feet of carpet cleaned. The curtent fee is $23.30 per hundred square feet. However, there is some question about whether the company is actually making any money on fobs for some customers-particularly those located on remote ranches that require considerable travel time, The owner's daughtec, 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 octivity cost pools and their activity measures appear below: The total cost of operating the company for the year is $360,000 which includes the following costs: Problem 7-20 (Algo) Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5] Gallatin Carpet Cleaning i a small, family-owned business operating out of Bozeman, Montana. For ils servicos, the company has always charged a flat fee per hundred square feet of carpet cleaned. The curtent fee is $23.30 per hundred square feet. However, there is some question about whether the company is actually making any money on fobs for some customers-particularly those located on remote ranches that require considerable travel time, The owner's daughtec, 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 octivity cost pools and their activity measures appear below: The total cost of operating the company for the year is $360,000 which includes the following costs

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