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Green Thumb Gardening is a small gardening service that 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 size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, 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 bede Travel to jobs Miles Customer billing 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: Estimated Overhead Activity Cost Pool Cost Expected Activity caring for lawn $ 01,000 105,000 square feet of lawn Caring for garden bedoelow maintenance $3,600 26,000 square feet of low maintenance beds Caring for garden beds-high maintenance $ 55,600 20,000 square feet of high maintenance beds Travel to jobs $ 4.000 17,000 miles Customer billing and service $ 8.300 28 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds--high maintenance Travel to jobs Customer billing and service Activity Rate per square ft of lawn per square ft of low maintenance beds per square ft of high maintenance beds per mile per customer Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $9 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $45 per setup Production orders $ 170 per order Shipments $ 120 per shipment Product mustaining $ 800 per product Activity data have been supplied for the following two products: Number of unito-produced per year Direct labor-hours Machine-hours Machine setup Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1.075 50 2,800 40 19 2 19 2 38 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost
