**Green Thumb Gardening Overview**Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The owner identifies cost drivers mainly as the size of customer lawns, garden beds, travel distance, and number of customers. Maintenance costs for garden beds vary based on whether the beds are low-maintenance (ordinary trees and shrubs) or high-maintenance (flowers and exotic plants). The company uses five activity cost pools:1. **Caring for Lawn** - **Activity Measure:** Square feet of lawn2. **Caring for Garden Beds—Low Maintenance** - **Activity Measure:** Square feet of low-maintenance beds3. **Caring for Garden Beds—High Maintenance** - **Activity Measure:** Square feet of high-maintenance beds4. **Travel to Jobs** - **Activity Measure:** Miles5. **Customer Billing and Service** - **Activity Measure:** Number of customers**Cost Allocations and Estimated Activity**The company has summarized its annual costs and activities as follows:- **Caring for Lawn** - **Cost:** $85,000 - **Expected Activity:** 160,000 square feet of lawn- **Caring for Garden Beds—Low Maintenance** - **Cost:** $37,600 - **Expected Activity:** 29,000 square feet of low-maintenance beds- **Caring for Garden Beds—High Maintenance** - **Cost:** $63,940 - **Expected Activity:** 23,000 square feet of high-maintenance beds- **Travel to Jobs** - **Cost:** $4,600 - **Expected Activity:** 20,000 miles- **Customer Billing and Service** - **Cost:** $9,500 - **Expected Activity:** 32 customers**Requirement**Compute the activity rate for each of the activity cost pools and round answers to two decimal places.**Activity Rate Calculation Table:**| Activity Cost Pool | Activity Rate ||-------------------------------------------------|------------------------------------------|| Caring for Lawn | per square foot of lawn || Caring for Garden Beds—Low Maintenance | per square foot of low-maintenance beds || Caring for Garden Beds—High Maintenance | per square foot of high-maintenance beds || Travel to Jobs | per mile || Customer Billing and Service | per customer |**Note

Name: **Green Thumb Gardening Overview**Green Thumb Gardening is a small ga
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **Green Thumb Gardening Overview**Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The owner identifies cost drivers mainly as the size of customer lawns, garden be