Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Greener Garden USA provides lawn care and landscaping services to commercial clients. Greener Garden USA uses activity-based costing to bid on jobs and to evaluate

image text in transcribedimage text in transcribed

Greener Garden USA provides lawn care and landscaping services to commercial clients. Greener Garden USA uses activity-based costing to bid on jobs and to evaluate their profitability. Greener Garden 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 Greener Garden USA's costs to the activity-cost pools and determine the activity rate for each pool. Start by allocating Greener Garden USA's costs to the activity-cost pools. (Enter zero in any cell if no amount should be allocated to the activity-cost pool.) Estimating Lawn Landscape jobs care design Other Total Wages and salaries Depreciation Supplies Other overhead Total A Data Table John Foster, controller of Greener Garden USA, has established four activity cost pools and the following budgeted activity for each cost pool: Ict Data Table - X $ Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 300 estimates Lawn care Number of direct labor-hours 10,000 direct labor-hours Landscape design Number of design hours 125 design hours Other Facility-sustaining costs that are Not applicable not allocated to jobs Foster estimates that Greener Garden USA's costs are distributed to the activity-cost pools as follows: Wages and salaries Depreciation Supplies 440,000 52,000 100,000 162,000 754,000 Other overhead Lawn Care Landscape Design Other Total overhead costs Estimating Jobs 5% 10% 70% 5% 50% Print Wages and salaries Depreciation Supplies Other overhead Done Total 100% 100% 100% 100% 20% 15% 0% 25% 0% 25% 0% 15% 100% 40% 20% Vista Office Park, a new development in a nearby community, has contacted Greener Garden 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 300 direct labor-hours annually. Greener Garden USA has a policy of pricing estimates at 150% of cost

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

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Julie Anne Ragatz

2nd Edition

1405196130, 978-1405196130

More Books

Students also viewed these Accounting questions

Question

Who responds to your customers complaint letters?

Answered: 1 week ago

Question

Under what circumstances do your customers write complaint letters?

Answered: 1 week ago