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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

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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 Custoner 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: Estimated Overhead Activity Cost Pool Cost Expected Activity Caring for Lawn $ 72,000 150,000 square feet of lawn Caring for garden beds-low maintenance $ 26,400 20,000 square feet of low maintenance beds Caring for garden beds-high maintenance $ 41,400 15,000 square feet of high maintenance beds Travel to jobs $ 3,250 12,500 miles Customer billing and service $ 8,750 25 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places except customer billing and service.) Activity Rate Activity Cost Pool Caring for town Caring for garden beds low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square feet of town per square feet of low maintenance beds per square feet of high maintenance beds per mile per customer Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $ 6 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $ 58 per setup Production orders $ 90 per order Shipments $ 14 per shipment Product sustaining $ 840 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 200 Direct labor-hours 2,000 80 500 Machine-hours 100 1,500 Machine setups 1 4 Production orders 1 4 Shipments 1 10 Product sustaining 1 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ N

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