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NAGY Landscaping uses activity based costing to assist in estimating costs for pricing. The owner of the company believes that costs are driven by the

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NAGY Landscaping uses activity based costing to assist in estimating costs for pricing. The owner of the company believes that costs are driven by the side of customer lawns, the size of customer garden beds, the distance to travel to customers and the number of its customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance bods or high maintenance beds. The company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure Caring for lawn Square feet of lawn Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high maintenance beds Travel to jobs Miles Customer biling and service Number of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows Activity Cost Pool Estimated Overhead Cost Expected Activity Caring for lawn $ 60.000 120.000 square ft. of lawn Low maintenance garden beds $ 25,000 25.000 square ft. of low maintenance beds High maintenance garden beds $ 45,000 15,000 square ft. of high maintenance beds Travel to jobs $ 3,500 14,000 miles Customer billing and service $ 8.700 20 customers Required: Compute the activity rate for each of the 5 cost pools above (Caring for lawn, Low maintenance garden beds, High maintenance garden beds, Travel to jobs, and Customer billing and service)

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