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Green Thumb Gardening is a small gardening service using activity - based costing to estimate costs for pricing and other purposes. The owner of the

Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for pricing and other purposes. The owner of the company believes 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 depend 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 bedslow maintenance Square feet of low-maintenance beds
Caring for garden bedshigh maintenance Square feet of high-maintenance beds
Travel to jobs Miles
Customer billing and service Number of customers
The company completed its first-stage cost allocations and summarized its annual costs and activity as follows:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Caring for lawn $ 77,800160,000 square feet of lawn
Caring for garden bedslow maintenance $ 30,40029,000 square feet of low-maintenance beds
Caring for garden bedshigh maintenance $ 64,63023,000 square feet of high-maintenance beds
Travel to jobs $ 3,80020,000 miles
Customer billing and service $ 7,90022 customers
Required:
Compute the activity rate for each of the activity cost pools.Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for pricing and other purposes.
The owner of the company believes 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 depend 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:
The company completed its first-stage cost allocations and summarized its annual costs and activity as follows:
Required:
Compute the activity rate for each of the activity cost pools.
Note: Round your answers to 2 decimal places.
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