Rental Listings in 727 M Chapter 7 Home X M nbox (517) cbs013 Y Accounting Help! Prc C chegg study I Guided Q try In context How to take a screen mheducat ezto n.com 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 $24.00 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: Activity Cost Pool Activity Measure Activity for the Year Square feet cleaned (00s) 9,500 hundred square feet Cleaning carpets 90,500 miles Travel to jobs Miles driven Number of jobs 700 jobs Job support other (costs of idle capacity and organization-sustaining costs) None Not applicable The total cost of operating the company for the year is $339,000, which includes the following costs: Wages 147,000 Cleaning supplies 26,000 Cleaning equipment depreciation 8,000 Vehicle expenses 31,000 office expenses 55,000 President's compensation 72.000 339,000 Total cost Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Travel to Job Carpets Support Othe Total Jobs 73% Wages 5% 0% 2% 00% 100% Cleaning supplies 00% 0% 0%. Cleaning equipment depreciation 72% 28% Vehicle expenses 0% 78% 0% 22% 00% Office expenses 0% 62% 38% 00% President's compensation 0% 25% 75% 00% Ask me anything 9:42 PM 3/13/2017