EXERCISE 7-3 Compute Activity Rates L07-3 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 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 main- tenance 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 Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square foet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Mlies 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 Estimated Overhead Cost Expected Activity $72,000 150,000 square feet of lawn $26,400 Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service.. 20,000 square feet of low maintenance beds $41,400 $3,250 $8.750 15,000 square feet of high maintenance beds 12,500 miles 25 customers hy! A lool to Aid Decision Making Required: Compute the activity rate for each of the activity cost pools. FVERAIN