Green Thumb Gardening is a small gardening service that usesactivity-based costing to estimate costs for pricing and otherpurposes. The proprietor of the company believes that costs aredriven primarily by the size of customer lawns, the size ofcustomer garden beds, the distance to travel to customers, and thenumber of customers. In addition, the costs of maintaining gardenbeds depends on whether the beds are low maintenance beds (mainlyordinary trees and shrubs) or high maintenance beds (mainly flowersand exotic plants). Accordingly, the company uses the five activitycost pools listed below:

Activity Cost Pool	ActivityMeasure
Caring for lawn	Square feet of lawn
Caring for garden beds–lowmaintenance	Square feet of low maintenancebeds
Caring for garden beds–highmaintenance	Square feet of high maintenancebeds
Travel to jobs	Miles
Customer billing andservice	Number of customers

The company already has completed its first stage allocations ofcosts and has summarized its annual costs and activity asfollows:

  

Activity Cost Pool	Estimated Overhead Cost		Expected Activity
Caring for lawn	$	77,800	170,000	square feet of lawn
Caring for garden beds–lowmaintenance	$	30,400	29,000	square feet of low maintenancebeds
Caring for garden beds–highmaintenance	$	64,630	23,000	square feet of high maintenancebeds
Travel to jobs	$	3,600	20,000	miles
Customer billing andservice	$	7,500	30	customers

Activity Cost Pool	Activity Rate
Caring for lawn		per square ft of lawn
Caring for garden beds—lowmaintenance		per square ft of low maintenancebeds
Caring for garden beds—highmaintenance		per square ft of high maintenancebeds
Travel to jobs		per mile
Customer billing andservice		per customer