Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help im stuck! The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden

help im stuck!
image text in transcribed
image text in transcribed
The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure Caring for lawn Square feet of lawn Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high maintenance beds Travel to jobs Miles Customer billing and service Number of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Estimated Overhead Activity Cost Pool Cost Expected Activity Caring for lawn $ 78,600 160,000 square feet of lawn Caring for garden beds-low maintenance $ 31,200 22,800 square feet of low maintenance beds Caring for garden beds-high maintenance $ 44, 480 16,000 square feet of high maintenance beds Travel to jobs $ 4,800 13,000 miles 30 customers $ 9,900 Customer billing and service Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds per mile per customer

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

Managerial Accounting An Introduction To Concepts Methods And Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson

7th Edition

0030259630, 978-0030259630

More Books

Students also viewed these Accounting questions

Question

Summarize the impact of a termination on the employee.

Answered: 1 week ago