Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring

Question

Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows Estimated Overhead Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Expected Activity Cost $ 85,800 165,000 square feet of lawn $38,400 27,000 square feet of low maintenance beds 58,170 21,000 square feet of high maintenance beds $ 3,200 18,000 miles $ 6,700 28 customers Required Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square ft of lawn per square ft of low maintenance beds per square ft of high maintenance beds per mile per customer

Explanation / Answer

Caring for lawn (85800/165000)=$0.52/square feet Caring for garden beds-low maintenance (38400/27000)=$1.42/square feet Caring for garden beds-high maintenance (58170/21000)=$2.77per square feet Travel to jobs (3200/18000)=$0.18 per mile. Customer billing and service (6700/28)=$239.29 per customer.

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