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Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Estimated Overhead Cost $ 77,000 $ 29,600 $ 52,820 $ 5,200 $ 10,700 Expected Activity 165,000 square feet of lawn 25,000 square feet of low maintenance beds 19,000 square feet of high maintenance beds 16,000 miles 20 Customers Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service $ 77,000 $ 29,600 $ 52,820 $ 5,200 $ 10,700 165,000 square feet of lawn 25,000 square feet of low maintenance beds 19,000 square feet of high maintenance beds 16,000 miles 20 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Caring for lawn Caring for garden beds low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square It of lawn per square ft of low maintenance beds per square ft of high maintenance beds per mile per customer Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 8 per direct labor-hour $ 4 per machine-hour $ 45 per setup $ 170 per order $ 115 per shipment $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 1,025 60 2,200 13 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 26 Shipments Product sustaining 33 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost
