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: Estimated Overhead Activity Cost Pool Cost Caring for lawn $ 81,800 Caring for garden beds-low maintenance Caring for garden beds-high maintenance $ 34,400 $ 50,040 Travel to jobs $ 4,400 $ 9,100 Customer billing and service Required: Compute the activity rate for each of the activity cost pools. Note: Round your answers to 2 decimal places. Expected Activity 185,000 square feet of lawn 24,000 square feet of low-maintenance beds 18,000 square feet of high-maintenance beds 15,000 miles 24 customers Activity Cost Pool Activity Rate Caring for lawn $ 0.44 per square feet of lawn Caring for garden beds-low maintenance $ 1.27 per square feet of low-maintenance beds Caring for garden beds-high maintenance $ 2.83 per square feet of high-maintenance beds Travel to jobs $ 0.24 per mile Customer billing and service $ 267.65 per customer

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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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:
Activity Cost Pool
Estimated Overhead
Caring for lawn
Cost
$ 81,800
Caring for garden beds-low maintenance
$ 34,400
Caring for garden beds-high maintenance
$ 50,040
Travel to jobs
Customer billing and service
Required:
Compute the activity rate for each of the activity cost pools.
Note: Round your answers to 2 decimal places.
$ 4,400
$ 9,100
Expected Activity
185,000 square feet of lawn
24,000 square feet of low-maintenance beds
18,000 square feet of high-maintenance beds
15,000 miles
24 customers
Activity Cost Pool
Activity Rate
Caring for lawn
$
0.44 per square feet of lawn
Caring for garden beds-low maintenance
$
1.27 per square feet of low-maintenance beds
Caring for garden beds-high maintenance
$
2.83 per square feet of high-maintenance beds
Travel to jobs
$
0.24 per mile
Customer billing and service
$
267.65 per customer
Transcribed Image Text: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: Activity Cost Pool Estimated Overhead Caring for lawn Cost $ 81,800 Caring for garden beds-low maintenance $ 34,400 Caring for garden beds-high maintenance $ 50,040 Travel to jobs Customer billing and service Required: Compute the activity rate for each of the activity cost pools. Note: Round your answers to 2 decimal places. $ 4,400 $ 9,100 Expected Activity 185,000 square feet of lawn 24,000 square feet of low-maintenance beds 18,000 square feet of high-maintenance beds 15,000 miles 24 customers Activity Cost Pool Activity Rate Caring for lawn $ 0.44 per square feet of lawn Caring for garden beds-low maintenance $ 1.27 per square feet of low-maintenance beds Caring for garden beds-high maintenance $ 2.83 per square feet of high-maintenance beds Travel to jobs $ 0.24 per mile Customer billing and service $ 267.65 per customer
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