Activity Rate Assignment | Top Universities

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 depend 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  Cusl 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 foot of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company has already 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 Cost $ 85,000 $ 37,600 $ 59,430 $ 3,600 $ 7,500 Expected Activity 170,000 square feet of lawn 27,000 square feel of low maintenance beds 21,000 square feet of high maintenance beds 18.000 miles 28 customers Required: Compute the activity rate for each of the activity boat pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Caring for lawn Caring for garden beds—ow maintenance Caring for garden buds-high maintenance Travel to jobs per square foot of lawn per square foot of low maintenance beds per square fool or high maintenance per mile Customer billing and service per customer. Get Accounting Homework Help Today