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9:24 PM Sat Novw 3 4.75 points Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a fliat fee per hundred square feet of carpet cleaned. The current fee is $22.05 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, 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 Cleaning carpets Travel to jobs Jeb support Other (costs of idle capacty Activity Measure Activity for the Year Square feet cleaned (00s) Miles driven Number of jobs 12,000 hundred square 401,000 miles 2,000 job Not applicable The total cost of operating the company for the year is $351,000, which includes the following costs s 147 25,000 9000 32,000 60,000 Cleaning supplies Office expenses Total cos Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Carpets Travel to Jobs Job Support Other Cleaning supplies Cleaning equipment depreciaion 100% 68% 100% Office expenses 100% 0% 0% 31% Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. 1. Prepare the first-stage allocation of costs to the activity cost pools. Travel to Carpets Wages Cleaning supplies Office expenses Total cost

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