Answered step by step
Verified Expert Solution
Question
1 Approved Answer
III. Activity-Based Costing A landscaping company uses an ABC system. S400,000 of indirect materials, and (2) $420,000 utilities and equipment use. The cost driver for
III. Activity-Based Costing A landscaping company uses an ABC system. S400,000 of indirect materials, and (2) $420,000 utilities and equipment use. The cost driver for indirect materials is direct materials. The cost driver for utilities and equipment is square footage of jobs. Estimated total direct materials costs for the year are $500,000 and estimated total square footage of all jobs for the year is 1,000,000 square feet. The overhead is divided up into two cost pools: (1) A new client wants their backyard completely renovated, with new plantings, a trellis, a waterfall, and a fishpond. The company estimates the direct costs of the job as follows: Direct Direct labor. ....10,000 14,000 a. What rates are used to charge overhead to jobs? Ans: $ per direct material dollar per square foot b. The landscaping job described involves 8,000 square feet. What is the estimated total cost of the job, using the ABC system? Ans: $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started