Green Thumb Gardening is a small gardening service that uses activity-based cost

Question

Green Thumb Gardening is a small gardening service that uses activity-based costing pricing and other purposes. The proprietor 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: of the company believes that costs are driven primarily by the Activity Cost Pool Caring for lawn Square feet of lawn Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high maintenance beds Travel to jobs Customer billing and service Miles Number of customers 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 $ Caring for garden beds-high maintenance s Travel to jobs Customer billing and service Expected Activity Cost 88,200 165,000 square feet of lawn maintenance nce $40,800 25,000 square feet of low maintenance beds $ 51,110 9,000 square feet of high maintenance beds 16,000 miles 5,000 10,300 24 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-ow maintenance Caring for garden beds-high per square foot of lawn per square foot of low maintenance per square foot of high maintenance beds F3 FS

Explanation / Answer

Caring for lawn 0.53 =88200/165000 Caring for garden beds-low maintenance 1.63 =40800/25000 Caring for garden beds-high maintenance 2.69 =51110/19000 Travel to jobs 0.31 =5000/16000 Customer billing and service 429.17 =10300/24

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