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(Click the icon to view budgeted annual costs.) (Click the icon to view additional information.) Read the Requirement 1. Allocate Tree and Lawn USA's costs
(Click the icon to view budgeted annual costs.) (Click the icon to view additional information.) Read the 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.) Data table John Carter, controller of Tree and Lawn USA, has established four activity cost pools and the following budgeted activity for each cost pool: Carter estimates that Tree and Lawn USA's costs are distributed to the activity-cost pools as follows: Yancy 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 225 direct labor-hours annually. Tree and Lawn USA has a policy of pricing estimates at 150% of cost. Data table 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 Yancy Office Park job. How much would Tree and Lawn USA bid to perform the job? 3. Tree and Lawn USA does 27 landscape designs for its customers each year. Estimate the total cost for the Yancy 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. Yancy 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
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