apter 5 Homework i 1 5 dines Boo Penn echnology & Justi.. M Sign In Connect). Course Transfer Mo Home I Saved Help Save & Exit Subs Problem 5-20 (Algo) Evaluating the Profitability of Services [LO5-2, LO5-3, LO5-4, LO5-5] 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 $23.05 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 Activity cost 661 Cleaning cerpets Travel to jobs Job support other (organization sustaining costs and idle capacity costs) Activity Heasone Square feet cleaned (0) Miles driven Number of Jobs Activity for the Year 11,500 hundred square feet 326,000 miles 1,900 jobs Not applicable The total cost of operating the company for the year is $345.000 which includes the following costs Voges cleaning supplies Cleaning equipsent depreciation Vehicle expenses office expenses President's compensation Total cost $ 147,000 21,000 12,000 27,000 60,000 70,999 345,000 Resource consumption is distributed across the activities as follows