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IACC2233 Hand-In Assignment 6 Problem1 [LO 2} Compute Activity Rates Brookside Property Management is a property management service company for small shopping malls and uses
IACC2233 Hand-In Assignment 6 Problem1 [LO 2} Compute Activity Rates Brookside Property Management is a property management service company for small shopping malls and uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the area of outdoor maintenance (parking lots, sidewalks, and gardens}, the area of indoor tenant space in the shopping mall, the distance to travel to the shopping mall, and the number of shopping malls managed. In addition, the costs of managing the indoor tenant space depend on whether the tenants are located on the main level or other levels of the mall. Accordingly, the company uses the ve activity cost pools listed below: Activity Cost Pccl Activity Measure Management of outdoor areas Square metres of outdoor areas Management of indoor mall spacemain level Square metres of main level mall space Management of indoor mall spaceother levels Square metres of nonmain level mall space Travel to jobs Kilometres Customer billing and service Number of shopping malls The company has already carried out its rst-stage allocations of costs. The company's annual costs and activities are summarized as follows: Estimated |Cliverhead Activity Cost Fuel Cost Expected Activity Management of outdoor areas $69,850 12?,U sq. metres of outdoor areas Management of indoor mall Space main level $114,4DU 1D4,UUD sq. metres of main level mall space Management of indoor Mall space other levels $3?,50 246,0 sq. metres of nonmain level mall space Travel to jobs $8,6UU 22,006 kilometres
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