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Please answer 3 and 4 Lawn Care USA provides town care and landscaping services to commercial clients Care USA es activity based costing to bid
Please answer 3 and 4
Lawn Care USA provides town care and landscaping services to commercial clients Care USA es activity based costing to bid on jobs and to evaluate their profitability Lawn Care USA ponto the fole Click the icon to view budgeted annual costs) Click the icon to view additional formation) Read the requirements Requirement 1. Alocate LawCare USA'Scots so the activity-cost pools and determine the activity rate for each pool Start by allocating Lawn Care USAs costs to the activity.contpools. (Enterrein ny ell no amount should be located to the activitycoupool) Estimating Lawn Landscape jobs design Total Wages and salaries Depreciation Supplies 0 Other Overhead care Other 0 Total Data Table Data Table 5 John Gilroy, controler of Lawn Care USA has established four activity-cost pool and the folowing budgeted activity for each cost pool: Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of jobs 250 estimates Lawn care Number of direct labor hours 10,000 direct labor hours Landscape design Number of design hours 500 design hours Other Facility sustaining costs that are not allocated to jobs Not applicatie Gtroy estimates that Lawn Care USA's costs are distributed to the activity cost pools as follows: Estimating Landscape Jobs Lawn Care Design Other Total Wages and salaries 5% 70% 10% 100% Depreciation 10% 65% 105 15% 100% Supplies 0% 100% on 0% 100% Other overhead 50% 20% 100% Sunset Office Park a new development in a nearby community, has contacted Lawn Care USA to provide 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 250 direct labor-hours annual Lawn Care USA has a policy of pricing estimates at 150% of cost Wages and salaries Depreciation Supplies Other overhead Total overhead costs 360,000 72.000 120.000 200,000 340,000 Ento Print Dona 8 Clear All w USA presentare and undateing arvous to comerciani LowCare USA based on 19 a on jots and to evaluate their pretty w USA bloeng IONS micie www en to view tional information Requirement 1. Ac Care USA to the cost pools and the activity for each pool Start by locating LowC USAY ON to controls they must roult be alocated to meet Estimating Landscape Jobs Total 16.000 14.000 30.000 380.000 Der 1.200 7200 10.000 72.000 120,000 120.000 Orowhead 41200 144.000 57 800 200 DE 400 503103 30.000 3 140 000 How wet e formula semine the sentenverw. Ten sa ty te for at po red. Det er tout Mount Cust contrer Convert 1 400 327360 La 3 500.000 -1 422 DH 11.10 500 .237.00 par design 16.000 Rewirements out for the Sun Of How we LwC UA or the jo? Chiw melaware USA und her to the 13.00 1 14.000 La 320 M ETTO Herman Lee USA Gestora for the rest van Lee the number and her than the roadcast Hemach UBA When Why Lawn Care USA provides iawn care and landscaping services 10 commercial clients. LanCare USA uses activity-based costing to bid on jobs and to evaluase ser profitability Lawn Care USA reports the following budgeted annual Cost Click the ice to view budgeted annual costs) Click the icon to view additionat information) care 7200 0 5 Requirement 1. Alocate Lawn Care USA'S COES te activity-cost pools and determine the setve rase for each cool Start by allocating Lawn Care USA's cost 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 design Other Total Wages and salaries 18.000 5 2620005 54.000 5 30.000 $ 300.000 Depreciation 7,200 40.800 10.800 72.000 Supplies 120.000 120.000 Other overhead 43.200 144.000 67.600 43.200 288.000 08.4003 302.800 118.500 5 Total 60.000 340.000 New seact the formula used to cerermine the cost driver rates then calculate the stvay rate for each pool (Abbreviation used DLH = Direct labe-hour. Round the answers to be nearest cent XXX) Cost Total quantity of cost arver = Coat driver rate Estimating jobs 88.400 250 $273.80 per estimate Lawn Care 5 582 800 10.000 -5 58.25 per DLH Landscape design 118 800 $ 237.00 per design hour Requirement 2. Estimare total cost for the Sunset Mice Pack job. How much would Lawn Care USA bid to perform the job? Calculate the total costs and bid amount Lawn Care USA would change Sunset Opice Pax Round the answert 10 the restestcent, "XXX"> 5 272.00 3 1407000 5 Landscape design 9.504.00 Total cost $23.847.00 Markup multiple 150 Bid estimate 35.77140 Requirement 3. Lawn Care USA does 30 landscape designs for customers each year Estimate the total cost for me Sunset Orice park job if Lawn Care USA allocated costs of the Landscape Design activity based on the number of landscape designs tather than the number of landscape desig-hours. How much would Lawn Care USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? How much would Lawn Care USA Die to perform the job? 500 Lawn Care Landscape design Total costa Markup mulier Bid est 5-35 First-stage allocation, time-driven activity-based costing, service sector. Lawn Care USA DOVOR lawn care and landscaping services to commercial clients. Lawn Care USA uses activity-based cosing to bid on jobs and to evaluate their profitability. Lawn Care USA reports the following budgeted annual costs Wages and salaries $360,000 Depreciation 72,000 Supplies 120,000 Other overhead 288,000 Total overhead costs $840,000 John Gilroy, controller of LawnCare USA, has established four activity cost pools and the following bug- geted activity for each cost pool: Activity Cost Pool Activity Measure Total Activity for the Year Estimating jobs Number of job estimates 250 estimates Lawn care Number of direct labor-hours 10,000 direct labor-hours Landscape design Number of design hours 500 design hours Other Facility-sustaining costs that are not Not applicable allocated to jobs Gilroy estimates that Lawn Care USA's costs are distributed to the activity-cost pools as follows: Landscape Estimating Jobs Lawn Care Design Other Total Wages and salaries 5% 70% 15% 10% 100% Depreciation 10% 65% 10% 15% 100% Supplies 0% 100% 0% 0% Other overhead 100% 15% 50% 20% 15% 100% Sunset Office Park, a new development in a nearby community, has contacted Lawn Care 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 250 direct labor-hours annually. LawnCare USA has a policy of pricing estimates at 150% of cost. job? 1. Allocate Lawn Care USA's costs to the activity-cost pools and determine the activity rate for each pool . 2. Estimate total cost for the Sunset Office Park job. How much would LawnCare USA bid to perform the 3. Lawn Care USA does 30 landscape designs for its customers each year. Estimate the total cost for the Sunset Office park job if Lawn Care 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 Lawn Care USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activ- ity? Why? 4. Sunset Office Park asks Lawn Care USA to give an estimate for providing its services for a 2-year period. What are the advantages and disadvantages for LawnCare USA to provide a 2-year estimateStep by Step Solution
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