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Home Lawncare USA provides lawn care and landscaping services to commercial clients. Home Lawncare USA uses activity-based costing to bid on jobs and to evaluate
Home Lawncare USA provides lawn care and landscaping services to commercial clients. Home Lawncare USA uses activity-based costing to bid on jobs and to evaluate their profitability. Home Lawncare 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 Home Lawncare USA's costs to the activity-cost pools and determine the activity rate for each pool. Start by allocating Home Lawncare 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 provides lawn care and landscaping services to commercial SA reports th Data Table o view budgeted annual costs.) o view additional information.) ents. John Calbert, controller of Home Lawncare USA, has established four activity cost pools and the following budgeted activity for each cost pool: Data Table cate lome $ 270,000 Wages and salaries Depreciation Supplies 50,000 110,000 383,000 Other overhead Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 350 estimates Lawn care Number of direct labor-hours 5,000 direct labor-hours Landscape design Number of design hours 300 design hours Other Facility-sustaining costs that are not allocated to jobs Not applicable Calbert estimates that Home Lawncare USA's costs are distributed to the activity-cost pools as follows: Estimating Landscape Jobs Lawn Care Design Total Wages and salaries 5% 5% 100% Depreciation 5% 60% 15% 20% 100% Supplies 0% 100% 0% 0% 100% Other overhead 20% 40% 15% 25% 100% $ 813,000 Total overhead costs Other 70% 20% Print Done Wolcott Office Park, a new development in a nearby community, has contacted Home Lawncare 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 350 direct labor-hours annually. Home Lawncare USA has a policy of pricing estimates at 150% of cost. Print Done n the edit fields and then click Check
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