Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10 1 points Exercise 7-3 (Algo) Compute Activity Rates [LO7-3] Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs
10 1 points Exercise 7-3 (Algo) Compute Activity Rates [LO7-3] Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for pricing and other purposes. The owner of the company belleves 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 depend 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 completed its first-stage cost allocations and summarized its annual costs and activity as follows: Activity Cost Pool Caring for lawn Estimated Overhead Cost $ 84,200 Expected Activity 170,000 square feet of lawn 29,000 square feet of low-maintenance beds 23,000 square feet of high-maintenance beds 20,000 miles 22 customers Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Required: $ 36,800 $ 61,870 $ 4,800 $ 9,900 Compute the activity rate for each of the activity cost pools. Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. Activity Cost Pool Activity Rate Caring for lawn S 0.49 per square feet of lawn Caring for garden beds-low maintenance S 1.34 per square feet of low-maintenance beds Caring for garden beds-high maintenance S 2.85 per square feet of high-maintenance beds Travel to jobs S 0.21 per mile Customer billing and service 296..43 per customer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started