Greener Garden, Inc., provides lawn care and landscaping services to commercial clients. Greener Garden uses activity-based costing to bid on jobs and to evaluate their profitability. Greener Garden reports the following annual costs: (Click the icon to view annual costs.) Wages and salaries $ $ 240,000 Depreciation Supplies 68,000 100,000 327,000 Other overhead $ 735,000 Total overhead costs John Gibson, controller of Greener Garden, has established four activity costs pools and estimates that Greener Garden's costs are distributed to the activity-cost pools as follows: |(Click the icon to view the activity cost pools and the costs associated to the activity-cost pools.) Activity Cost Pool Estimating jobs Lawn care Landscape design Other Activity Measure Number of job estimatess Number of direct labor-hours Number of design hours Facility-sustaining costs that are not allocated to jobs Total Activity for the Year 275 estimates 5,000 direct labor-hours 400 design hours Not applicable He estimates that Greener Garden's costs are distributed to the activity-cost pools as follows. Estimating Lawn Landscape Design Jobs Care Other Total 5% 65% 15% 15% 100% Wages and salaries Depreciation Supplies 20% 50% 15% 15% 100% 0% 100% 0% 0% 100% Other overhead 5% 40% 30% 25% 100% Vista Office Park, a new development in a nearby community, has contacted Greener Garden 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 275 direct labor-hours annually. Greener Garden has a policy of pricing estimates at 150% of allocated cost Read the requirements. 1. Allocate Greener Garden's costs to the activity-cost pools and determine the activity rate for each pool. 2. Estimate total cost for the Vista Office Park job. 3. How much should Greener Garden bid to perform the job? 4. Vista Office Park asks Greener Garden to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Greener Garden to provide a 2-year estimate