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secure https://newconnect.mheducation.com/flow/connect.html?isReg.true&returnUri.https;%3A t mheduca Mail- Alkhulaif, Has:Connct C Martinez Company Review Test Submis: Q 7 (Chapter 7) 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, whether the beds are low maintenance beds (mainly ordinary the size of customer garden customers, and the number of customers. In addition, the costs of maintaining garden beds depends or trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below Caring for lawn Caring for garden beds-low maintenance Square feet of lawn Square feet of high saintenance beds Number of custoners travei tor jobrden beds-high maintenance Square feet of high intenaeseds Travel to jobs Customer billing and service ady has completed its first stage allocations of costs and has summarized its annual costs and activity as follows Estinated ivity Cost Pool Caring for Lawn Expected Activity 81,000 175,000 square feet of lawn caring for garden beds-highaintenc833690 27,0 square feet of low maintenance beds for·garden beds-high naintenance ss,e1021 s 3,800 18,660 miles s 7,900 square feet of high saintenance beds Travel to jobs Custoser billing and service 24 custoners Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) per square h Caring for ganden beds-igh maintenance Travel to jobs Customer biling and service per square t of high maintonance beds re 1 of 3 Next >

Explanation / Answer

Compute activity rate :

Activity cost pool Activity rate Caring for lawn 0.46 Per square ft of lawn Caring for garden beds-Low maintenance 1.24 Per square ft of law maintenance beds Caring for garden beds-high maintenance 2.81 Per square ft of high maintenance beds Travel to jobs 0.21 Per mile Customer billing and service 329.17 Per customer

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