Answered step by step
Verified Expert Solution
Question
1 Approved Answer
As You Like It Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of
As You Like It 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 Square feet of low-maintenance beds Caring for garden beds -high maintenanceSquare feet of high-maintenance beds Travel to jobs Customer billing and service Activity Measure Square feet of lawn 0 Miles Number of customers The company has already completed its first-stage allocations of costs. The company's annual costs and activities are summarized as follows Overhead Cost Activity Cost Pool Caring for lawn Caring for garden bedsow maintenance$ 33,60026,000 square feet of low-maintenance beds Caring for garden bedshigh maintenance S 53,60020,000 square feet of high-maintenance beds Travel to jobs Customer billing and service Expected Activity 81,000170,000 square feet of lawn S 3,40017,000 miles S 7,100 24 customers Required Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Activity Cost Pool Activity Rate Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square foot of lawn per square foot of low maintenance beds per square foot of high maintenance beds per mile per customer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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