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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 Poot Caring for Lawn Caring for garden beds-Low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of Lawn Square feet of low maintenance beds Square feet of high naintenance 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 Cost $ 87,400 $ 40,000 $ 63,940 Activity Cost Poot Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Castoner billing and service Activity Measure $4,400 $ 9,100 Activity Cost Peol Caring for len Cating for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer siling and service Expected Activity: 145,000 square feet of Lawn 29,000 square feet of low maintenance beds 23,000 square feet of high maintenance beds 20,000 miles 40 customers Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places) Activity Rate per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds per mie per customer MacBook Air

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 Poot Caring for Lawn Caring for garden beds-Low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of Lawn Square feet of low maintenance beds Square feet of high naintenance 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 Cost $ 87,400 $ 40,000 $ 63,940 Activity Cost Poot Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Castoner billing and service Activity Measure $4,400 $ 9,100 Activity Cost Peol Caring for len Cating for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer siling and service Expected Activity: 145,000 square feet of Lawn 29,000 square feet of low maintenance beds 23,000 square feet of high maintenance beds 20,000 miles 40 customers Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places) Activity Rate per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds per mie per customer MacBook Air

FINANCIAL ACCOUNTING
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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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 Caring for garden beds-Low maintenance Activity Measure Square feet of lawn Caring for garden beds-high maintenance Square feet of low maintenance beds Square feet of high naintenance beds Miles Travel to jebs Custoner billing and service 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 Cost $ 87,400 $ 40,000 $ 63,940 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 $4,400 $9,100 Activity Cost Peel Caring for en Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer biling and service Expected Activity. 165,000 square feet of Lawn 29,000 square feet of low maintenance beds 23,000 square feet of high maintenance beds 20,000 miles 40 customers Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate per square feet of lawn per square foot of low maintenance beds per square feet of high maintenance beds per mie per customer MacBook Air
Transcribed Image Text: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 Caring for garden beds-Low maintenance Activity Measure Square feet of lawn Caring for garden beds-high maintenance Square feet of low maintenance beds Square feet of high naintenance beds Miles Travel to jebs Custoner billing and service 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 Cost $ 87,400 $ 40,000 $ 63,940 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 $4,400 $9,100 Activity Cost Peel Caring for en Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer biling and service Expected Activity. 165,000 square feet of Lawn 29,000 square feet of low maintenance beds 23,000 square feet of high maintenance beds 20,000 miles 40 customers Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate per square feet of lawn per square foot of low maintenance beds per square feet of high maintenance beds per mie per customer MacBook Air
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