Exerclse $5-3($Algo$)$ Compute Actlvity Rates $[$LO$5-3]$

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 maintenance 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 feet of lawn

Square feet of low maintenance beds

Square feet of high maintenance beds

Miles

Number of customers

The company already has completed its first$-$stage allocations of costs and has summarized its annual costs and activity as follows:

Requlred:

Compute the activity rate for each of the activity cost pools. $($Round your answers to $2$ declmal pleces.$)$xercise $5-3($Algo$)$ Compute Activity Rates $[$LO$5-3]$

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 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 beds$$low maintenance Square feet of low maintenance beds

Caring for garden beds$$high maintenance Square feet of high maintenance beds

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 Cost Pool Estimated

Overhead

Cost Expected Activity

Caring for lawn $ $82,600170,000$ square feet of lawn

Caring for garden beds$$low maintenance $ $35,20025,000$ square feet of low maintenance beds

Caring for garden beds$$high maintenance $ $53,39019,000$ square feet of high maintenance beds

Travel to jobs $ $4,20016,000$ miles

Customer billing and service $ $8,70026$ customers

Required:

Compute the activity rate for each of the activity cost pools. $($Round your answers to $2$ decimal places.$)$