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refund this question please 5-35 First-stage allocation, time-driven activity-based costing, service sector. Lawn Care USA provides lawn care and landscaping services to commercial clients. Lawn

refund this question please

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5-35 First-stage allocation, time-driven activity-based costing, service sector. Lawn Care USA provides lawn care and landscaping services to commercial clients. Lawn Care USA uses activity-based cost 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 S840,000 John Gilroy, controller of Lawn Care USA, has established four activity cost pools and the following bus. 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 LawnCare 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. 1. Allocate LawnCare 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 job? 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 LawnCare 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 Lawn Care USA to provide a 2-year estimate? Score: 3.88 of 5 pts 3 a % P5-35 (book/static) Lawn Care USA provides lawn care and landscaping services to commercial clients. La USA reports the following budgeted annual costs: (Click the icon to view budgeted annual costs.) (Click the icon Read the requirements. Lawn care $ 14,070.00 9,504.00 $ Landscape design Total costs Markup multiplier $ 23,847.60 150 % Bid estimate 35,771.40 Requirement 3. Lawn Care USA does 30 landscape designs for its customers each year Landscape Design activity based on the number of landscape designs rather than the nu cost driver do you prefer for the Landscape Design activity? Why? How much would Lawn Care USA bid to perform the job? Estimating jobs Lawn care Landscape design 3960 Total costs Markup multiplier % Bid estimate Enter any number in the edit fields and then click Check Answer 2 parts remaining New cities or compete

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