Category > ManagementPosted 21 Dec 2017My Price10.00
to estimate costs for pricing and other purposes.
Please help with the question. Â I checked my answers via my course and they were incorrect...not sure what I am doing wrong, as this seems simple..but!
As You Like It Gardening is a small gardening service that uses activity-based costing to estimate costsfor pricing and other purposes. The proprietor of the company believes that costs are driven primarily bythe size of customer lawns, the size of customer garden beds, the distance to travel to customers, andthe number of customers. In addition, the costs of maintaining garden beds depends on whether thebeds are low-maintenance beds (mainly ordinary trees and shrubs) or high-maintenance beds (mainlyflowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:Activity Cost PoolActivity Measure Caring for lawnSquare feet of lawnCaring for garden beds—low maintenanceSquare feet of low-maintenance bedsCaring for garden beds—high maintenanceSquare feet of high-maintenance bedsTravel to jobsMilesCustomer billing and serviceNumber of customersThe company has already completed its first-stage allocations of costs. The company’s annual costsand activities are summarized as follows:Activity Cost PoolEstimatedOverheadCostExpected ActivityCaring for lawn$82,600 165,000square feet of lawnCaring for garden beds—low maintenance$35,200 25,000square feet of low-maintenance bedsCaring for garden beds—high maintenance$52,820 19,000square feet of high-maintenance bedsTravel to jobs$4,800 16,000 milesCustomer billing and service$9,900 38 customersRequired:Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimalplaces.)Activity Cost PoolActivityRateCaring for lawnper square foot of lawnCaring for garden beds—low maintenanceper square foot of low maintenancebedsCaring for garden beds—high maintenanceper square foot of high maintenance bedsTravel to jobsper mileCustomer billing and serviceper customer
