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The Evergreen Landscaping Company has one maintenance department and three regional service departments: Residential, Commercial, and Public Parks. The budgeted cost behavior pattern of
The Evergreen Landscaping Company has one maintenance department and three regional service departments: Residential, Commercial, and Public Parks. The budgeted cost behavior pattern of the maintenance department is $605,956 monthly in fixed costs plus $1.72 per 1,000 square feet maintained in the Residential, Commercial, and Public Parks regions. (Square feet maintained is the number of square feet serviced during the month.) The actual monthly costs of the maintenance department are allocated using square feet maintained as the cost-allocation base. Requirement 1. Evergreen maintained a total of 320 million square feet of area in April, with an equal share in each service region. The actual costs of the maintenance department were exactly equal to those predicted by the budget for 320 million square feet. Compute the maintenence costs that would be allocated to each service region on an actual square feet maintained basis. o The Total Fixed Costs for Evergreen are: 1 The Variable Cost rate for Evergreen is: 2 (round to nearest dollar) per 1,000 square feet maintained 13 The maintenence cost the would be allocated to Residential would be 14 The maintenence cost the would be allocated to Commercial would be: 15 The maintenence cost the would be allocated to Public Parks would be: 16 17 The Actual Cost rate per 1000 square feet maintained for Residential would be: 18 The Actual Cost rate per 1000 square feet maintained for Commercial would be: 19 The Actual Cost rate per 1000 square feet maintained for Public parks would be: 20 (round to nearest dollar) (round to nearest dollar) (round to nearest dollar) (2 decimal places) (2 decimal places) (2 decimal places)
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