Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and otherpurposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size ofcustomer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaininggarden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenancbeds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:Activity Cost PoolCaring for lawnCaring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceThe company already has completed its first stage allocations of costs and has summarized its annual costs and activity asfollows:Activity Cost PoolCaring for lawnCaring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceActivity MeasureSquare feet of lawnSquare feet of low maintenance bedsSquare feet of high maintenance bedsMilesNumber of customersActivity Cost PoolCaring for lawnCaring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceEstimated OverheadCost$ 76,200$ 28,800$ 56,800$ 4,600$ 9,500Expected Activity180,000 square feet of lawn26,000 square feet of low maintenance beds20,000 square feet of high maintenance beds17,000 miles22 customersRequired:Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)Activity Rateper square feet of lawnper square feet of low maintenance bedsper square feet of high maintenance bedsper mileper customer

Name: Green Thumb Gardening is a small gardening service that uses activity
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and otherpurposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size ofcus

Compute the activity rate for each of the activity cost pools:- Activity Cost pool Activity…

Business

Accounting

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 maintenanc beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: 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:

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 maintenanc beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: 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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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