set1 Exercise 7-3 (Algo) Compute Activity Rates [LO7-3] 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 beds Travel to Jobs Miles Customer billing and service Mumber of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Rences Activity Cost Pool Caring for im Caring for garden beds-low maintenance Caring for den beds-high maintenance Travel to jobs Customer willing and service Estimated Overhead Cost Expected Activity $77.000 185.000 quare feet of 5 29.600 28,000 square feet of low maintenance beds 558,50 22,000 square feet of Mig mintenance beds $ 4.000 19,000 miles 32 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) Activity Cost Pod Activity Rate per flawn perwartoflow maintenance beds Caring for garden beds-low maintenance Caring for gardenmanance Travel Customer and service Type here to search o i C 2 3 5 6 Q W E R T Tab set1 Exercise 7-3 (Algo) Compute Activity Rates [LO7-3] 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 beds Travel to Jobs Miles Customer billing and service Mumber of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Rences Activity Cost Pool Caring for im Caring for garden beds-low maintenance Caring for den beds-high maintenance Travel to jobs Customer willing and service Estimated Overhead Cost Expected Activity $77.000 185.000 quare feet of 5 29.600 28,000 square feet of low maintenance beds 558,50 22,000 square feet of Mig mintenance beds $ 4.000 19,000 miles 32 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) Activity Cost Pod Activity Rate per flawn perwartoflow maintenance beds Caring for garden beds-low maintenance Caring for gardenmanance Travel Customer and service Type here to search o i C 2 3 5 6 Q W E R T Tab
