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Check s Exercise 7-3 Compute Activity Rates [LO7-3 Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing

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Check s Exercise 7-3 Compute Activity Rates [LO7-3 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 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 customers. In addition, the costs of maintaining garden beds depends on Caring for lawn Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Estimated Activity Cost Pool 76, 200 185,000 square feet of lawn 28,800 28,000 square feet of low maintenance beds beds S 3,800 19,000 miles 30 customers to search Travel to jobs Cust Next >

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