Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer it Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of
answer it
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 lawn Square feet of love Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high naintenance beds Travel to jobs Milen Customer billing and service Wumber of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Estimated Overhead Activity Coat Pool Coat Expected Activity Caring for lawn $ 75,400 160,000 square feet of lawn caring for garden beds-low maintenance $ 28,000 23,000 square feet of low maintenance bede caring for garden beds-high maintenance $ 46,240 17,000 square feet of high maintenance beda Travel to jobs 4,200 14,000 miles Customer billing and service $ 0,700 26 customers Required: Compute the activity rate for each of the activity cost pools, (Round your answers to 2 decimal places.) es Activity Rate Activity Cost Pool Caring for town Caring for garden beds-low maintenance Caring for garden beds--high maintenance Travel to jobs per square feet of lawn per square foot of low maintenance beds per square feet of high maintenance beds per mile 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