Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
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 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 Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Estimated Overhead Cost $ 85,000 $ 37,600 $ 47,940 $ 3,600 $ 7. Expected Activity 165,000 square feet of law 23,000 square feet of low maintenance beds 17,000 square feet of high maintenance beds 14,miles 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 lown Caring for garden beds low maintenance Caring for garden beds high maintenance Travel to jobs Customer billing and service per square of lawn per square ft of low maintenance beds per square ft of high maintenance beds per mile per customer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forest Management Auditing

Authors: Lucio Brotto

1st Edition

0367605872, 978-0367605872

More Books

Students also viewed these Accounting questions