anta Help Save&Exit; Green Thumb Gardening is a small gardening service u The pr
ID: 2540827 • Letter: A
Question
anta Help Save&Exit; Green Thumb Gardening is a small gardening service u 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 whether the beds are low maintenance beds (mainly ordinary t plants). Accordingly, the company uses the five activity cost pools listed below: that uses activity-based costing to estimate costs for pricing and other purposes garden beds depends on ees and shrubs) or high maintenance beds (mainly flowers and exotic Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company aready has completed stsit s ag licaio of costs and has summarzed ts nnual costs and achvty as olow Estimated Overhead 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 $ 83,400 165,000 square feet of lautn s36,000 26,000 square feet of low maintenance beds 55,200 20,00 square feet of high maintenance beds $3,600 17,000 miles s 7,580 30 custonersExplanation / Answer
Activity Cost Pool Estimated Overhead Cost Expected Activity Activity Rate Caring for lawn 83400 165000 0.51 per square ft of lawn Caring for garden beds-low maintenance 36000 26000 1.38 per square ft of low maintenance beds Caring for garden beds-high maintenance 55200 20000 2.76 per square ft of high maintenance beds Travel to jobs 3600 17000 0.21 per mile Customer billing and service 7500 30 250.00 per customer
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