QUESTION LawnScape Canada provides lawn care and landscaping services to commercial clients. Landscape Canada uses activity-based costing to bid on jobs and to evaluate their profitability. Neha Sharma, the cost analyst of LawnScape Canada, has established four activity cost pools and the following budgeted activity for each cost pool: Activity cost pool Activity measure Total activity Overhead costs Estimating Jobs Lawn Care Number of job estimates 225 estimates $68,400 Number of direct labor hours 12,000 direct $492,000 labor hours Landscape Design Number of design hours 500 design $158,000 hours Other Organization-sustaining costs Not applicable $100,000 $818,400 King's Cross Office Park, a new development in a nearby community, has contacted LawnScape Canada to provide an estimate on landscape design and annual lawn maintenance. The job is estimated to require a single landscape design requiring 75 design hours in total and 250 direct labor-hours annually. LawnScape Canada has a policy of pricing estimates at 150% of cost. Required: i) ii) iii) How much would LawnScape Canada bid for the King's Cross Office Park job? LawnScape Canada does 60 landscape designs for its customers each year. How much would LawnScape Canada bid for the King's Cross Office Park job if it allocated costs of the Landscape Design activity based on the number of landscape designs rather than the number of landscape design-hours? Consider (i) and (ii). Which cost driver would you prefer for the Landscape Design activity? Explain the reason for your choice using specific information provided in the question.