2The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:Activity Cost PoolCaring for lawn.Caring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceEstimated OverheadActivity Cost PoolCaring for lawnCaring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceCost$ 76,200$ 28,800$ 45,600$ 3,400$ 7,100Required:Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)Expected Activity175,000 square feet of lawn22,000 square feet of low maintenance beds16,000 square feet of high maintenance beds13,000 miles22 customersActivity Rateper square feet of lawnper square feet of low maintenance bedsper square feet of high maintenance beds.per mileper customer 2Green 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 gardenbeds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends onwhether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exoticplants). 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 serviceActivity MeasureSquare feet of lawnSquare feet of low maintenance bedsSquare feet of high maintenance bedsMilesNumber of customers.

Name: 2The company already has completed its first stage allocations of cos
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Description: 2The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:Activity Cost PoolCaring for lawn.Caring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel

The activity rate is calculated as estimated overhead costs divided by the estimated base activity…

Business

Accounting

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: 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 Estimated Overhead 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 Cost $ 76,200 $ 28,800 $ 45,600 $ 3,400 $ 7,100 Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Expected Activity 175,000 square feet of lawn 22,000 square feet of low maintenance beds 16,000 square feet of high maintenance beds 13,000 miles 22 customers per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds mile per per customer

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: 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 Estimated Overhead 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 Cost $ 76,200 $ 28,800 $ 45,600 $ 3,400 $ 7,100 Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Expected Activity 175,000 square feet of lawn 22,000 square feet of low maintenance beds 16,000 square feet of high maintenance beds 13,000 miles 22 customers per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds mile per per customer

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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