ID ezto.mheducation com Chapter 7 Homework Assignments: 201870-Second Summer 2 C
ID: 2429861 • Letter: I
Question
ID ezto.mheducation com Chapter 7 Homework Assignments: 201870-Second Summer 2 Chapter 7 Homework yl 11.11 points 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 depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly fowers 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 Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high maintenance beds Travel to jobs Customer billing and service Activity Measure Square feet of lawn 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: Estimated Overhead Expected Activity Activity Cost Pool Caring for lawn 190,000 square feet of lawn S 82,600 Caring for garden beds-low maintenance 35,200 Caring for garden beds-high maintenance 58,800 S 4,600 $ 9,500 27,000 square feet of low maintenance beds 21,000 square feet of high maintenance beds 18,000 miles Travel to jobs Customer billing and service 30 customers Required Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Cost Pool Activity Rate Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high per square foot of lawn per square per square foot of high maintenance foot of low maintenance beds Travel to jobs Customer billing and service beds per mile per customerExplanation / Answer
Statement showing computation of activity rate
Particular formula Detail activity rate Caring for lawn OH for caring of lawn/Total square feet lawn 82600/190000 0.43 Caring for garden beds low maintenance OH Cost for caring of low maintenance/square feet of low maintenance bed 35200/27000 1.30 Caring for garden beds high maintenance oh cost caring for garden beds high maintenance /square feet of high maintenance 58800/21000 2.80 Travel to jobs OH cost of travel/miles 4600/18000 0.26 Customer billing n service OH cost of billing and service/no of customer 9500/30 316.67