Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. green thumb gardening is a small gardening service

Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for...

60.1K

Verified Solution

Question

Accounting

Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for pricing and other purposes.
The owner of the company believes 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 Cost 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 feet of lawn
Square feet of low-maintenance beds
Square feet of high-maintenance beds
Miles
Number of customers
The company completed its first-stage cost allocations and summarized its annual costs and activity as follows:
Required:
Compute the activity rate for each of the activity cost pools.
Note: Round your answers to 2 decimal places.
image

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students