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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

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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 their profitability. Home Lawncare USA reports the following budgeted annual costs: Click the icon to view budgeted annual costs.) BE (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 design Other Total Wages and salaries Depreciation Supplies care Other overhead Total vides lawn care and landscaping services to commercial clients. Hop Did on jobs and to evaluate their profitability. Home Lawncare USA re v budgeted annual costs.) v additional information.) . HI Jine Data table La y- CE Cancel $ 480,000 Wages and salaries Depreciation Supplies 52,000 85,000 158,000 Other overhead $ 775.000 Total overhead costs Print Done Data table ta Table John Green, controller of Home Lawncare USA, has established four activity cost pools and the following budgeted activity for each cost pool: Total Activity for the Activity Cost Pool Activity Measure Year Estimating jobs Number of job estimates 225 estimates 10,000 direct labor- Lawn care Number of direct labor-hours hours Landscape design Number of design hours 200 design hours Facility-sustaining costs that are not Other allocated to jobs Not applicable Green estimates that Home Lawncare USA's costs are distributed to the activity-cost pools as follows: Estimating Landscape Jobs Lawn Care Design Other Total Wages and salaries 10% 65% 15% 10% 100% Depreciation 5% 55% 20% 20% 100% Supplies 0% 100% 0% 0% 100% Other overhead 25% 40% 10% 25% 100% Wolcott Office Park, a new development in a nearby community, has contacted Requirements 1. Allocate Home Lawncare USA's costs to the activity-cost pools and determine the activity rate for each pool. 2. Estimate total cost for the Wolcott Office Park job. How much would Home Lawncare USA bid to perform the job? 3. Home Lawncare USA does 31 landscape designs for its customers each year. Estimate the total cost for the Wolcott Office park job if Home Lawncare 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 Home Lawncare USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? 4. Wolcott Office Park asks Home Lawncare USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Home Lawncare USA to provide a 2-year estimate

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