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 | Activity Measure |
| Caring for lawn | Square feet of lawn |
| Caring for garden beds–low maintenance | Square feet of low maintenance beds |
| Caring for garden beds–high maintenance | Square feet of high maintenance beds |
| Travel to jobs | Miles |
| Customer billing and service | 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 | $ | 87,400 | 175,000 | square feet of lawn |
| Caring for garden beds–low maintenance | $ | 40,000 | 29,000 | square feet of low maintenance beds |
| Caring for garden beds–high maintenance | $ | 62,330 | 23,000 | square feet of high maintenance beds |
| Travel to jobs | $ | 3,400 | 20,000 | miles |
| Customer billing and service | $ | 7,100 | 28 | customers |
|
Required:
Compute the activity rate for each of the activity cost pools.(Round your answers to 2 decimal places.)
Caring for lawn (per sq ft of laawn)
Caring for garden bed-low maintenance (per sq ft of lowmaintenance bed)
Caring for garden bed-high maintenance (per sq ft of highmaintenance bed)
Travel to jobs (per mile)
Customer billing service (per customer)
