Tops Onlino × Women\'s FasM Access Conmx × D Princigles of | ezto.mheducation.co

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Tops Onlino × Women's FasM Access Conmx × D Princigles of | ezto.mheducation.com/hm.tpx a 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 Caring for lawn Activity Measure Square feet of lawn for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company has already 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$ 36,000 Caring for garden beds-high maintenance $56,200 20,000 square feet of high maintenance beds Travel to jobs Customer billing and service Cost $ 83,400 170,000 square feet of lawn Expected Activity 26,000 square feet of low maintenance beds s 4600 17,000 miles $ 9,500 34 customers Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high Activity Rate per square foot of lawn square foot of low maintenance beds per per square foot of high maintenance beds maintenance

Explanation / Answer

Activity rate for each of the activity cost pool is as calculated below:

Activity Cost Pool Activity rate Cost driver Caring for Lawn 0.49 83,400/170,000 per square foot of lawn Caring for Garden beds- low maintenance 1.38 36,000/26,000 per square foot of low maintenance beds Caring for garden beds- high maintenance 2.81 56,200/20,000 per square foot of high maintenance beds Travel to jobs 0.27 4,600/17,000 per mile Customer billing and service 279.41 9,500/34 per customer Total

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