S-Brookside property management is a property management service company for small shopping malls that uses ABC to estimate costs for pricing and other purposes. The owner of the company believes that costs are driven primarily by the area of outdoor maintenance (parking lots, sidewalks, and gardens), the area of indoor tenant space in the shopping mall, the distance to travel to the shopping mal, and the number of shopping malls managed. In addition, the costs of managing the indoor tenant space depend on whether the tenants are located on the main level or other levels of the mal. Accordingly, the company uses the five activity cost pools listed below Activity measure Activity cost pool square meters of outdoor areas. Management of outdoor areas square meters of main level mall space Management of indoor mall space-main level square meters of non-main level mall space Management of indoor mall space-other levels kilometers Travel to jobs number of shopping malls Customer billing and service The company has already carried out its first-stage allocations of costs. The company's annual costs and activities are summarized as follows Estimated overhead Expected Activity Activity Cost Pool cost 127,000 sqm of outdoor areas $69,850 Management of outdoor areas $114,400 104,000 sqm of main level mall space Management of indoor mall space-main level 246,000sqm of non-main level mall space Management of indoor mall space-other levels $307,500 22,000 kilometers $6,600 Travel to jobs 8 shopping malls $13,800 Customer billing and service Parker Hills Shopping Mall is one of Brookside's oldest clients. Details concerning the mall's layout, outdoor space, and distance from Brookside's head office are as follows: (sq means square meters) Total Activity for parker Hills Mall Activity cost pool 16,000 sq meters of outdoor areas Management of outdoor areas 25,000 sq meters of main level mall space Management of indoor mall space-main level 0.00 as mall only has one level Management of indoor mall space-other levels Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places). 1. Activity cost pool Activity rate Management of out-door areas per square meter of outdoor mall area Management of mall space-main level AA per square meter of main level mall space Travel to jobs per kilometer Customer billing and service per shopping mall Determine the total overhead cost that would be assigned to the Parker Hills Shopping Mall using the ABC system. 2. Activity cost pool ABC cost Activity Activity rate Management of outdoor areas 2 square meters of outdoor mal areas Management of mall space-main level square meters of main level mall space sqm Management of indoor mall space-other levels square meters of non-main level mall space m klometers Travel to jobs kms Customer billing and service shopping mall shopping mals Total cost assigned an 5-Brookside property management is a property management service company for small shopping malls that uses ABC to estimate costs for pricing and other purposes. The owner of the company believes that costs are driven primarily by the area of outdoor maintenance (parking lots, sidewalks, and gardens), the area of indoor tenant space in the shopping mall, the distance to travel to the shopping mall, and the number of shopping malls managed. In addition, the costs of managing the indoor tenant space depend on whether the tenants are located on the main level or other levels of the mall. Accordingly, the company uses the five activity cost pools listed below: Activity cost pool Activity measure Management of outdoor areas square meters of outdoor areas Management of indoor mall space-main level square meters of main level mall space Management of indoor mall space-other levels square meters of non-main level mall space Travel to jobs kilometers Customer billing and service number of shopping malls The company has already carried out its first-stage allocations of costs. The company's annual costs and activities are summarized as follows: Activity Cost Pool Estimated overhead Expected Activity cost Management of outdoor areas $69,850 127,000 sqm of outdoor areas Management of indoor mall space-main level $114,400 104,000 sqm of main level mall space Management of indoor mall space-other levels $ 307,500 246,000sqm of non-main level mall space Travel to jobs $6,600 22,000 kilometers Customer billing and service $13,800 8 shopping malls Parker Hills Shopping Mall is one of Brookside's oldest clients. Details concerning the mall's layout, outdoor space, and distance from Brookside's head office are as follows: (sq means square meters) Activity cost pool Total Activity for parker Hills Mall Management of outdoor areas 16,000 sq meters of outdoor areas Management of indoor mall space-main level 25,000 sq meters of main level mall space Management of indoor mall space-other levels 0.00 as mall only has one level Travel To jobs Customers bllings andservia 2,500 KmsTraveRled Shopping malls
