Green Thumb USA provides lawn care and landscaping services to commercial clients. Green Thumb USA uses activity-based costing to bid on jobs and to evaluate their profitability. Green Thumb USA reports the following budgeted annual costs: (Click the icon to view budgeted annual costs.) (Click the icon to view additional information.) Read the requirements. ... Requirement 1. Allocate Green Thumb USA's costs to the activity-cost pools and determine the activity rate for each pool. Start by allocating Green Thumb USA's costs to the activity-cost pools. (Enter zero in any cell if no amount should be allocated to the activity-cost pool.) Other Total Estimating jobs 27,000 $ 12,400 $ Lawn Landscape care design 148,500 $ 40,500 $ 27,900 9,300 115,000 174.000 43,500 Wages and salaries Depreciation Supplies Other overhead 54,000 $ 12,400 0 270,000 62,000 0 58,000 115,000 290,000 14,500 $ 97,400 $ 465,400 $ 93.300 $ 80,900 $ 737,000 Total Now select the formula used to determine the cost driver rates, then calculate the activity rate for each pool. (Abbreviation used: DLH = Direct labor-hour. Round the answers to the nearest cent, "X.XX") Cost Total quantity of cost driver Cost driver rate Estimating jobs $ 97,400 100 = $ 974.00 per estimate Lawn care $ 465,400 5.000 = $ 93.08 per DLH Landscape design $ 93,300 625 = $ 149.28 per design hour Requirement 2. Estimate total cost for the Shasta Office Park job. How much would Green Thumb USA bid to perform the job? Calculate the total costs and bid amount Green Thumb USA would charge Shasta Office Park. (Round the answers to the nearest cent, "XXX".) Estimating jobs $ 974.00 Lawn care $ 9,308.00 $ 5,971.20 Landscape design Total costs $ 16,253.20 150 % Markup multiplier $ 24,379.80 Bid estimate Requirement 3. Green Thumb USA does 34 landscape designs for its customers each year. Estimate the total cost for the Shasta Office park job if Green Thumb USA allocated costs of the Landscape Design activity based on the number of landscape designs rather than the number of landscape design-hours. How much would Green Thumb USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? How much would Green Thumb USA bid to perform the job? Estimating jobs $ 974.00 $ 9,308.00 $ 2,744.12 Landscape design Total costs $ 13,026.12 Markup multiplier 150 % $ 19.539.18 Bid estimate Lawn care Which cost driver do you prefer for the Landscape Design activity? Why? landscape design-hours, making it complex than the average design. Using the number of V as the cost driver results in a bid estimate that is too low. Using the While the Shasta Office park landscape design is only one of 34 performed by Green Thumb USA, it accounts for number of is a more accurate measure of Green Thumb USA's costs for each job because it 026/12 150/ 539.B less more Escape Design activity? Why? sign is only one of 34 pettormed by Green Thumo USAit accounts for any landscape desion-hours, making it more accurate measure of Green Thumb USAs costs for each job because it complex than the au less more accounts for landscape design-hours, making it allen complex than the average design. Using the number of ach job because it landscape designs landscape design-hours Was the cost drivervesults in a bid estimate that is tog complex than the average design. Using the number of 13 026.12 Markup mi 1% Bid estima 9.18 landscape designs Which cos landscape design-hours ape Design activity? While the $ i is only one of 34 per number of is a more accurate measure of distinguishes the costs between simple and complex landscape designs, results in a more competitive bid price. simplifies the cost allocation process. Whe number of SAW accounts for for each job because it - X X Data table Data table $ 270.000 Wages and salaries Depreciation Supplies 62,000 115,000 290.000 Other overhead $ 737,000 Total overhead costs John Butler, controller of Green Thumb USA, has established four activity cost pools and the following budgeted activity for each cost pool: Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 100 estimates Lawn care Number of direct labor-hours 5,000 direct labor-hours Landscape design Number of design hours 625 design hours Other Facility-sustaining costs that are not allocated to jobs Not applicable Butler estimates that Green Thumb USA's costs are distributed to the activity-cost pools as follows: Estimating Landscape Lawn Care Design Other Total Wages and salaries 10% 55% 15% 20% 100% Depreciation 20% 45% 15% 20% 100% Supplies 0% 100% 0% 0% 100% Other overhead 20% 60% 15% 5% 100% Print Done Jobs mergonom hich cost driver do you prefer for the Landscape Design activity ? Shasta Office Park, a new development in a nearby community, has contacted Green Thumb USA to provide an estimate on landscape design and annual lawn maintenance. The job is estimated to require a single landscape design requiring 40 design hours in total and 100 direct labor-hours annually. Green Thumb USA has a policy of pricing estimates at 150% of cost. Requirements 1. Allocate Green Thumb USA's costs to the activity-cost pools and determine the activity rate for each pool. 2. Estimate total cost for the Shasta Office Park job. How much would Green Thumb USA bid to perform the job? 3. Green Thumb USA does 34 landscape designs for its customers each year. Estimate the total cost for the Shasta Office park job if Green Thumb USA allocated costs of the Landscape Design activity based on the number of landscape designs rather than the number of landscape design-hours. How much would Green Thumb USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? 4. Shasta Office Park asks Green Thumb USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Green Thumb USA to provide a 2-year estimate