Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 has already completed its first stage allocations of costs and has summarized its annual costs and activity as follows Estimated Overhead Activity Cost Pool Caring for lawn Cost Expected Activity $ 85,000 Caring for garden beds-low maintenance S 37,600 Caring for garden beds-high maintenance 65,280 S 4,000 S 8,300 185,000 square feet of lawn 30,000 square feet of low maintenance beds 24,000 square feet of high maintenance beds 21,000 miles Travel to jobs Customer billing and service 26 customers Required Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Caring for lawn Caring for garden beds--low maintenance Caring for garden beds-high per square foot of lawn per square foot of low maintenance beds per square foot of high maintenance maintenance Travel to jobs Customer billing and service beds per mille per customer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started