Chapter 07 Problems i Saved Help Save & Exit Submit Check my work 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 $23.45 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: points Activity Cost Pool Cleaning carpets Travel to jobs Job support other organization-sustaining costs and Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Activity for the Year 13,500 hundred square feet eBook 206,500 miles 2,100 jobs idle capacity costs) None Not applicable Print The total cost of operating the company for the year is $349,000 which includes the following costs: References Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost $ 145,000 22,000 16,000 35,000 59,000 72,000 349,000 Resource consumption is distributed across the activities as follows