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Question 10 0 pts Gore Range Carpet Cleaning is a small business operating out of Colorado. For its services, the company charges a flat
Question 10 0 pts Gore Range Carpet Cleaning is a small business operating out of Colorado. For its services, the company charges a flat fee per hundred square feet of carpet cleaned. The current fee is $32.95 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 more remote ranches that require considerable travel time. The owner's daughter has suggested investigating this question using activity-based costing. 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 Activity Measure Activity for the Year 10,000 hundred square Cleaning carpets Square feet cleaned (00s) feet Travel to jobs Miles driven 50,000 miles Number of jobs Other None Job support *Other includes things like costs of idle capacity and organization-sustaining costs. The total costs of operating the company for the year are 1,800 jobs Not applicable
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