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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
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
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