Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CHTHWK 3 3.33 points Saved com%252Fmghmiddleware Help Save & Exit Submit Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate

CHTHWK 3 3.33 points Saved com%252Fmghmiddleware Help Save & Exit Submit 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. Caring for lavn Caring for garden beds-low maintenance Caring for garden bedn-high maintenance ellook Travel to jobs Hit References Customer billing and service Activity Heasure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Hiles Number of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Activity Cost Pool Caring for lavni Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs. Customer billing and service Required: Estimated Overhead Cost $87,400 $ 40,000 643,520 4,400 $9,100 Expected Activity 160,000 square feet of lawn 22,000 square feet of low maintenance bede 16,000 square feet of high maintenance beds 13,000 miles 36 customers Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Caring for lawn per square feet of lawn Caring for garden beds-low maintenance per square feet of low maintenance beds Travel to jobs Customer billing and service Required: maintenance $ 43,520 $ 4,400 $ 9,100 16,000 square feet of high maintenance beds 13,000 miles 36 customers Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Caring for lawn per square feet of lawn Caring for garden beds-low maintenance per square feet of low maintenance beds Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square feet of high maintenance beds per mille per customer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Solution Manual For An Introduction To The Mathematics Of Financial Derivatives

Authors: Mitch Warachka, Steven Hogan, Salih N. Neftci

2nd Edition

0125153937, 978-0125153935

More Books

Students also viewed these Accounting questions