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 completed its first-stage cost allocations and summarized its annual costs and activity as follows: Estimated Overhead Activity Cost Pool Cost Caring for lawn $ 81,800 Caring for garden beds-low maintenance Caring for garden beds-high maintenance $ 34,400 $ 50,040 Travel to jobs $ 4,400 $ 9,100 Customer billing and service Required: Compute the activity rate for each of the activity cost pools. Note: Round your answers to 2 decimal places. Expected Activity 185,000 square feet of lawn 24,000 square feet of low-maintenance beds 18,000 square feet of high-maintenance beds 15,000 miles 24 customers Activity Cost Pool Activity Rate Caring for lawn $ 0.44 per square feet of lawn Caring for garden beds-low maintenance $ 1.27 per square feet of low-maintenance beds Caring for garden beds-high maintenance $ 2.83 per square feet of high-maintenance beds Travel to jobs $ 0.24 per mile Customer billing and service $ 267.65 per customer

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Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.  

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.