Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs...
90.2K
Verified Solution
Question
Accounting
Green Thumb Gardening is a small gardening service that uses activitybased 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: tableActivity Cost Pool,Activity MeasureCaring for lawn,Square feet of lawnCaring for garden bedslow maintenance,Square feet of low maintenance bedsCaring for garden bedshigh maintenance,Square feet of high maintenance bedsTravel to jobs,MilesCustomer 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: tableEstimated Overhead,Expected ActivityActivity Cost Pool,Cost, square feet of lawnCaring for lawn,$ square feet of low maintenance bedsCaring for garden bedslow maintenance,$ square feet of high maintenance bedsCaring for garden bedshigh maintenance,$ milesTravel to jobs,$ customers Required: Compute the activity rate for each of the activity cost pools. Round your answers to decimal places except customer billing and service. tableActivity Cost Pool,Activity Rate,Caring for lawn,,per square feet of lawnCaring for garden bedslow maintenance,,per square feet of low maintenance bedsCaring for garden bedshigh maintenance,,per square feet of high maintenance bedsTravel to jobs,,per mileCustomer billing and service,per customer,
Green Thumb Gardening is a small gardening service that uses activitybased 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:
tableActivity Cost Pool,Activity MeasureCaring for lawn,Square feet of lawnCaring for garden bedslow maintenance,Square feet of low maintenance bedsCaring for garden bedshigh maintenance,Square feet of high maintenance bedsTravel to jobs,MilesCustomer 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:
tableEstimated Overhead,Expected ActivityActivity Cost Pool,Cost, square feet of lawnCaring for lawn,$ square feet of low maintenance bedsCaring for garden bedslow maintenance,$ square feet of high maintenance bedsCaring for garden bedshigh maintenance,$ milesTravel to jobs,$ customers
Required:
Compute the activity rate for each of the activity cost pools. Round your answers to decimal places except customer billing and service.
tableActivity Cost Pool,Activity Rate,Caring for lawn,,per square feet of lawnCaring for garden bedslow maintenance,,per square feet of low maintenance bedsCaring for garden bedshigh maintenance,,per square feet of high maintenance bedsTravel to jobs,,per mileCustomer billing and service,per customer,
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.