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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 activitybased 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 lowmaintenance beds mainly ordinary trees and shrubs or highmaintenance beds mainly flowers and exotic plants Accordingly, the company uses the five activity cost pools listed below: tableActivity Cost Pool,Activity MeasureCaring for lawn,Square feet of lawnCaring for garden bedslow maintenance,Square feet of lowmaintenance bedsCaring for garden bedshigh maintenance,Square feet of highmaintenance bedsTravel to jobs,MilesCustomer billing and service,Number of customers The company completed its firststage cost allocations and summarized its annual costs and activity as follows: tableActivity Cost Pool,tableEstimated OverheadCostExpected ActivityCaring for lawn,$square feet of lawnCaring for garden bedslow maintenance,$square feet of lowmaintenance bedsCaring for garden bedshigh maintenance,$square feet of highmaintenance bedstableTravel to jobsCustomer billing and service$milescustomer biling and service,$customers Required: Compute the activity rate for each of the activity cost pools. Note: Round your answers to decimal places. tableActivity Cost Pool,Activity Rate,Caring for lawn,,per square feet of lawnCaring for garden bedslow maintenance,,per square feet of lowmaintenance bedsCaring for garden bedshigh maintenance,,per square feet of highmaintenance bedsTravel to jobs,,per mileCustomer billing and service,per customer,
Green Thumb Gardening is a small gardening service using activitybased costing to estimate costs for pricing and other purposes. The owner of the company believes costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depend on whether the beds are lowmaintenance beds mainly ordinary trees and shrubs or highmaintenance beds mainly flowers and exotic plants Accordingly, the company uses the five activity cost pools listed below:
tableActivity Cost Pool,Activity MeasureCaring for lawn,Square feet of lawnCaring for garden bedslow maintenance,Square feet of lowmaintenance bedsCaring for garden bedshigh maintenance,Square feet of highmaintenance bedsTravel to jobs,MilesCustomer billing and service,Number of customers
The company completed its firststage cost allocations and summarized its annual costs and activity as follows:
tableActivity Cost Pool,tableEstimated OverheadCostExpected ActivityCaring for lawn,$square feet of lawnCaring for garden bedslow maintenance,$square feet of lowmaintenance bedsCaring for garden bedshigh maintenance,$square feet of highmaintenance bedstableTravel to jobsCustomer billing and service$milescustomer biling and service,$customers
Required:
Compute the activity rate for each of the activity cost pools.
Note: Round your answers to decimal places.
tableActivity Cost Pool,Activity Rate,Caring for lawn,,per square feet of lawnCaring for garden bedslow maintenance,,per square feet of lowmaintenance bedsCaring for garden bedshigh maintenance,,per square feet of highmaintenance bedsTravel to jobs,,per mileCustomer billing and service,per customer,
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