Question: Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $ 1 3 . 1

Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $13.10 per hundred square feet. However, there is some question about whether the company is making a profit on jobs requiring considerable travel time. The owner's daughter suggested answering this question by designing an activity-based costing system using the information shown below:
\table[[Activity Cost Pool,Activity Measure,],[Cleaning carpets,Square feet cleaned (00s),Activity for the Year],[Travel to jobs,Miles driven,6,500 hundred square feet],[Job support,Number of jobs,278,000 miles],[Other (organization-sustaining costs and,,2,300 jobs],[\table[[idle capacity costs),None]],Not applicable,]]
The total cost of operating the company for the year is $346,000 which includes the following costs:
\table[[Wages,$136,000
 Gallatin Carpet Cleaning has always charged a flat fee per hundred

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