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Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet...

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Accounting

Gallatin Carpet Cleaning has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $12.85 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 Measu],[Cleaning carpets,Square feet cl],[Travel to jobs,Miles driven],[Number of jobs,],[Job support,],[Other (organization-sustaining costs and,],[Idle capacity costs),],[,],[The total cost of operating the company for the year is $344,000,],[,140,000],[Wages,24,000],[Cleaning supplies,15,000],[Cleaning equipment depreciation,29,000],[Vehicle expenses,65,000],[Office expenses,71,000],[President's compensation,$344,000
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