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:

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(Click the icon to view budgeted annual costs.)

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(Click the icon to view additional information.)Read the requirements

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.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 cell if no amount should be allocated to the activity-cost pool.)

	Estimating	Lawn	Landscape
	jobs	care	design	Other	Total
Wages and salaries
Depreciation
Supplies
Other overhead
Total

Enter any number in the edit fields and then click Check Answer.

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parts remaining

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Data Table

Wages and salaries	$345,000
Depreciation	70,000
Supplies	105,000
Other overhead	255,000
Total overhead costs	$775,000

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Data Table

John

Green,

controller of

Oakhurst

USA, has established four activity cost pools and the following budgeted activity for each cost pool:

Activity Cost Pool	Activity Measure	Total Activity for the Year
Estimating jobs	Number of job estimates	300 estimates
Lawn care	Number of direct labor-hours	10,000 direct labor-hours
Landscape design	Number of design hours	200 design hours
Other	Facility-sustaining costs that are not allocated to jobs	Not applicable

Green

estimates that

Oakhurst

USA's costs are distributed to the activity-cost pools as follows:

	Estimating Jobs	Lawn Care	Landscape Design	Other	Total
Wages and salaries	15%	55%	10%	20%	100%
Depreciation	15%	45%	25%	15%	100%
Supplies	0%	100%	0%	0%	100%
Other overhead	25%	45%	10%	20%	100%

Skylar

Office Park, a new development in a nearby community, has contacted

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

300

direct labor-hours annually.

Oakhurst

USA has a policy of pricing estimates at

150%

of cost

.

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 Skylar Office Park job. How much would Oakhurst USA bid to perform the job?
3.	Oakhurst USA does 35 landscape designs for its customers each year. Estimate the total cost for the Skylar 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.	Skylar 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?

ruou (har answer) Question Help 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 es 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 coll if no amount should be allocated to the activity-cost pool) Estimating Lawn Landscape jobs care design Other Total Wages and salaries Depreciation Supplies Other overhead 10/11) 10/15) Total Enter any number in the edit fields and then click Check Answer 8 parts ramina Clear AB Check Answer the activity-cost pools and determine the activity rate for each pool. e allocated to tivity-cl a X i Data Table Lawn care CA $ 345.000 Wages and salaries Depreciation Supplies 70,000 105,000 255.000 Other overhead $ Total overhead costs 775,000 Print Done Click Check Answer. fina i Data Table - X JSA pro Oakh the ico the ico required ment 1. allocating John Green, controller of Oakhurst USA, has established four activity cost pools and the following budgeted activity for each cost pool Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 300 estimates Lawn care Number of direct labor-hours 10,000 direct labor-hours Landscape design Number of design hours 200 design hours Other Facility-sustaining costs that are not allocated to jobs Not applicable Green 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 15% 55% 10% 20% 100% Depreciation 15% 45% 25% 15% 100% Supplies 0% 100% 0% 0% 100% Other overhead 25% 45% 10% 20% 100% and salar ciation ies overhead Skylar Office Park, a new development in a nearby community, has contacted 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 300 direct labor-hours annually. Oakhurst USA has a policy of pricing estimates. at 150% of cost er any number Print Done parts remaining Clear All 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 Skylar Office Park job. How much would Oakhurst USA bid to perform the job? 3. Oakhurst USA does 35 landscape designs for its customers each year. Estimate the total cost for the Skylar 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. Skylar 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? as Print Done