3. Tree and Lawn USA provides lawn care and landscaping services to commercial clients. Tree and Lawn USA uses activity-based costing to bid on jobs and to evaluate their profitability. Tree and Lawn USA reports the following budgeted annual costs: (Click the icon to view budgeted annual costs.) - Click the icon to view additional information.) Read the requirements. It Requirement 1. Allocate Tree and Lawn USA's costs to the activity-cost pools and determine the activity rate for each pool. Start by allocating Tree and Lawn USA's costs to the activity-cost pools. (Enter zero in any cell if no amount should be allocated to the activity-cost pool.) Lawn Estimating jobs Landscape design care Other Total Wages and salaries Depreciation Supplies Other overhead Total Now select the formula used to determine the cost driver rates, then calculate the activity rate swer. Now select the formula used to determine the cost driver rates, then calculate the activity rate for each pool. (Abbreviation used: DLH = Direct labor-hour. Round the answers to the nearest cent, "X.XX.) (1) (2) = Cost driver rate Estimating jobs (3) Lawn care (4) Landscape design (5) Requirement 2. Estimate total cost for the Skylar Office Park job. How much would Tree and Lawn USA bid to perform the job? Calculate the total costs and bid amount Tree and Lawn USA would charge Skylar Office Park. (Round the answers to the nearest cent, "X.XX".) Estimating jobs Lawn care Landscape design Total costs Requirement 2. Estimate total cost for the Skylar Office Park job. How much would Tree and Lawn USA bid to perform the job? ir pr Calculate the total costs and bid amount Tree and Lawn USA would charge Skylar Office Park. (Round the answers to the nearest cent, "X.XX".) activit cost Estimating jobs Lawn care Landscape design Total costs Markup multiplier Bid estimate La Requirement 3. Tree and Lawn USA dne 26. Inn ctiviti Requirement 3. Tree and Lawn USA does 25 landscape designs for its customers each year. Estimate the total cost for the Skylar Office park job if Tree and Lawn USA allocated costs of the Landscape Design activity based on the number of landscape designs rather than the number of landscape design-hours. How much would Tree and Lawn USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? How much would Tree and Lawn USA bid to perform the job? Estimating jobs Lawn care Landscape design Total costs Markup multiplier Bid estimate ost ir profitability Which cost driver do you prefer for the Landscape Design activity? Why? While the Skylar Office park landscape design is only one of 25 performed by Tree and Lawn USA, it accounts for (6) landscape design-hours, making it (7) complex than the average design. Using the number of (8) as the cost driver results in a bid estimate that is too low. Using the number of (9) is a more accurate measure of Tree and Lawn USA's costs for each job because it (10) sti Requirement 4. Skylar Office Park asks Tree and Lawn USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Tree and Lawn USA to provide a 2-year estimate? Because the landscape design and estimating costs are only incurred once for the entire job, bidding on a 2 year period (11) However, after submitting an estimate for 2 years, Tree and Lawn USA would (12) 1- Date 1: Data Table $ Wages and salaries Depreciation Supplies 500,000 68,000 105,000 64,000 Other overhead Total overhead costs 737,000 Ir profitab 2: Data Table John Butler, controller of Tree and Lawn USA, has established four activity cost pools and the following budgeted activity for each cost pool: Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 175 estimates Lawn care Number of direct labor-hours 10,000 direct labor-hours Landscape design Number of design hours 325 design hours Other Facility-sustaining costs that are Not applicable not allocated to jobs Butler estimates that Tree and Lawn USA's costs are distributed to the activity-cost pools as follows: Lawn Care Landscape Design Other 60% Wages and salaries Depreciation Supplies Other overhead Estimating Jobs 10% 10% 0% 25% 55% 100% 40% 20% 5% 0% 15% 10% 30% 0% 20% Total 100% 100% 100% 100% Skylar Office Park, a new development in a nearby community, has contacted Tree and Lawn USA to provide an estimate on landscape design and annual lawn maintenance. The lobis nswer. VILLIG Luusup Other Total Design 20% % Jobs 10% 10% 0% 25% Lawn Care 60% 55% 100% 40% Wages and salaries Depreciation Supplies Other overhead ir prof 5% 10% 30% 0% 20% 0% 15% 100% 100% 100% mit Skylar Office Park, a new development in a nearby community, has contacted Tree and Lawn USA to provide an estimate on landscape design and annual lawn maintenance. The job is estimated to require a single landscape design requiring 40 design hours in total and 175 direct labor-hours annually. Tree and Lawn USA has a policy of pricing estimates at 150% of cost. sti 3: Requirements 1. Allocate Tree and Lawn USA's costs to the activity-cost pools and determine the activity rate for each pool. 2. Estimate total cost for the Skylar Office Park job. How much would Tree and Lawn USA bid to perform the job? 3. Tree and Lawn USA does 25 landscape designs for its customers each year. Estimate the total cost for the Skylar Office park job if Tree and Lawn USA allocated costs of the Landscape Design activity based on the number of landscape designs rather than the number of landscape design-hours. How much would Tree and Lawn USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? 4. Skylar Office Park asks Tree and Lawn USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Tree and Lawn USA to provide a 2-year estimate