Homework: Chapter 5: Activity-Based Costing and Acti... Question 3, P5-35 (simila... Part 1 of 9 HW Score: 0%, 0 of 4 points O : 1 Points: 0 of 1 @ Save Oakhurst USA provides lawn care and landscaping services to commercial clients. Oakhurst USA uses activity-based costing to bid on jobs and to evaluate their profitability. Oakhurst 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. Data Table Requirement 1. Allocate Oakhurst USA's costs to the activity-cost pools and determine the activity rate for each pool Start by allocating Oakhurst USA's costs to the activity-cost pools. (Enter zero in any call if no amount should be allocated John Griffin, controller of Oakhurst USA, has established four activity cost pools and the following budgeted activity for each cost pool: Lawn Estimating jobs Landscape design care Other Total Wages and salaries Depreciation Supplies Other overhead Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 325 estimates Lawn care Number of direct labor-hours 10,000 direct labor-hours Landscape design Number of design hours 600 design hours Facility-sustaining costs that are not allocated to Other jobs Not applicable Griffin estimates that Oakhurst USA's costs are distributed to the activity-cost pools as follows: Estimating Landscape Jobs Lawn Care Design Other Total Wages and salaries 5% 60% 10% 25% 100% % Depreciation 15% 55% 5% 25% 100% Supplies 0%. 100% 0% 0% 100% Other overhead 20% 55% 10% 15% 100% Total Data Table Weston Office Park, a new development in a nearty community, has contacled Oakhurst 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 325 direct labor-hours annually. Oakhurst USA has a policy of pricing estimates at 150% of cost. $ 240,000 Wages and salaries Depreciation Supplies Other overhead 56,000 105,000 353,000 Print Done Done $ 754,000 Total overhead costs Help Me Solve This e Text Pages Get More Get More Requirements 1. Allocate Oakhurst USA's costs to the activity-cost pools and determine the activity rate for each pool. 2. Estimate total cost for the Weston Office Park job. How much would Oakhurst USA bid to perform the job? 3. Oakhurst USA does 25 landscape designs for its customers each year. Estimate the total cost for the Weston Office park job if Oakhurst 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 Oakhurst USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? 4. Weston Office Park asks Oakhurst USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for Oakhurst USA to provide a 2-year estimate? Print Done