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3 15 points Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor
3 15 points 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 Activity Measure Caring for low Square feet of In Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high maintenance beds Travel to jobs Miles Custoner billing and service Number of customer's eBook Hint Print The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Estimated Overhead Activity Cost Pool Cost Expected Activity Caring for low 305,000 285,000 square feet of Caring for garden beds-low maintenance $ 37,600 29,000 square feet of low maintenance Dede Caring for garden beds-high maintenance 3.64,00 23,000 square feet of haintenance beds Travel to jobs $4,000 20,000 miles Customer billing and service $9,000 customer's Print Required: Compute the activity rate for each of the activity cost pools, (Round your answers to 2 decimal places.) References 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 ft of lawn per square ft of low maintenance beds per square ft of high maintenance beds per mile per customer 4 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 15 points Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates 56 per direct labor-hour $ 4 per machine hour S40 per setup $ 160 per order $ 120 per shipment $ 800 per product Book Activity data have been supplied for the following two products References Number of units produced per year Direct labor hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity 1425 M67 200 2.000 1,150 50 2,000 13 2 13 26 2 2 eBook Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Hint Print K425 M67 References Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost S 0 $ 0
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