Green Thumb Gardening to a small gardening service theit uses activity-based coo

Question

Green Thumb Gardening to a small gardening service theit uses activity-based cooting to estüimate casks for pricing and other purpose. The proprichor of the company belinves thnit costs are drtven prtmortly by the stre of cuctomer lowns, the stze of customer gardesn beds, the distance to travel to austomers, and the number of customers n ldoo, the couts of maintaining garden beds depends an whether the beds are low maintennnce beds (matrly ardinary trees and shruba) or high maintenance beds (mainly fowers and ewottc plants Accordingly, the company uses the five acivity coot poold lated belowc Caring for lawn Caring for garden beds -low Caring for garden beds high Travel to jobs Square feet of lawn Square feet of low mointenance bedk Square feet of high maintenance bedk Miles malnitnance Customer billing and service The company has aiready completed ts first stage alocations of costs and has summarized Its annual costs and activity as follows: Overhesd Cost Ppol $72,000 150.000 square feet of lawn Caring for lawn Caring for gardeh b $26400. 20000 sqiere feet of low beds ., maintenance for garden b $ 4140015000 quare feet of high maintenance Travel to Joba 3250 12500miles Customer billing and service, S8750 ste for esih of the bct ompute decimal pisce.) cers.ere ttr of len Cerng tor

Explanation / Answer

Calculate activity rate :

Activity cost pool Activity rate Caring for lawn 0.48 per square foot of lawn Caring for garden beds-low maintenance 1.32 per square feet of low maintenance beds Caring for garden beds-high maintenance 2.76 per square feet of high maintenance beds Travel to jobs 0.26 per mile Customer billig and service 350 per customer

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