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

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Greener Lawn USA provides lawn care and landscaping services to commercial clients. Greener Lawn USA uses activity-based costing to bid on jobs and to evaluate their profitability. Greener Lawn 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. 1. Allocate Greener Lawn USA's costs to the activity-cost pools and determine the activity rate for each pool. 2. Estimate total cost for the Waverly Office Park job. How much would Greener Lawn USA bid to perform the job? 3. Greener Lawn USA does 31 landscape designs for its customers each year. Estimate the total cost for the Waverly Office park job if Greener Lawn 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 Greener Lawn USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? 4. Waverly Office Park asks Greener Lawn USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Greener Lawn USA to provide a 2-year estimate? John Gilroy, controller of Greener Lawn USA, has established four activity cost pools and the following budgeted activity for each cost pool: Waverly Office Park, a new development in a nearby community, has contacted Greener Lawn 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. Greener Lawn USA has a policy of pricing estimates at 150% of cost

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