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Exercise 7-3 (Algo) Compute Activity Rates (L07-3] 5.25 Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing

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Exercise 7-3 (Algo) Compute Activity Rates (L07-3] 5.25 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 lawn Caring for garden bedslow maintenance Square feet of low maintenance beda Caring for garden beds-high maintenance square feet of high maintenance boda Travel to jobs Miles Customer billing and service 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 Cont Pool Caring for lawn Caring for garden below maintenance Caring for garden beds-high maintenance Travel to joba Customer baling and service Tatimated Overhead Cout Expected Ativity $ 92,600 165,000 square feet of lawn $ 35,200 22.000 square feet of low maintenance, beda 345,200 16,000 square foot of high maintenance beds 54.600 13,000 miles 9.500 10 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Activity Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) $ Answer is complete but not entirely correct. Activity Cost Pool Activity Rate Caring for lawn 0.45 per square ft of lawn Caring for garden beds-low maintenance $ 1.21 per square ft of low maintenance beds Caring for garden beds-high maintenance 2.67 per square ft of high maintenance beds Travel to jobs $ 0.19 per mile Customer billing and service 282.14 per customer $ $

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