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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
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 Nexture Caring for lawn Square feet of lawn Caring for garden beds low saintenance Square feet of low maintenance beds Caring for garden bedshish maintenance Square feet of high maintenance beds Travel to Jobs Miles Custor billing and service Number of customers The company already has completed its first stoge allocations of costs and has summarized its annual costs and activity as follows: Activity Cost Pool Estimated Overhead Cost Expected Activity Caring for law 135,00 10,000 square feet of laun Care for den beds-waintenance $ 38,00 26,000 square feet of low maintenance beds Caring for den bedshish maintenance 3,000 20,000 foot of the saintenance beds Travel to Jobs $ 4,000 17.000 miles Customs billing and service 1,300 39 customers Activity Rate 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 per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds per mile per customer
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