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LXINUIT 1-0. EXERCISE 7-3 Compute Activity Rates [LO7-3] 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 flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure 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 lawn Square feet of low maintenance beds Square feet of high maintenance beds 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 Activity Cost Pool Cost Expected Activity $72,000 150,000 square feet of lawn Caring for lawn Caring for garden beds-low maintenance .. $26,400 20,000 square feet of low maintenance beds Caring for garden beds-high $41,400 $3,250 $8,750 15,000 square feet of high maintenance beds 12,500 miles maintenance Travel to jobs ... Customer billing and service... 25 customers

LXINUIT 1-0. EXERCISE 7-3 Compute Activity Rates [LO7-3] 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 flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure 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 lawn Square feet of low maintenance beds Square feet of high maintenance beds 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 Activity Cost Pool Cost Expected Activity $72,000 150,000 square feet of lawn Caring for lawn Caring for garden beds-low maintenance .. $26,400 20,000 square feet of low maintenance beds Caring for garden beds-high $41,400 $3,250 $8,750 15,000 square feet of high maintenance beds 12,500 miles maintenance Travel to jobs ... Customer billing and service... 25 customers

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter16: Manufacturing Accounting (mfg)
Section: Chapter Questions
Problem 4R: Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of...
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LXINUIT 1-0. EXERCISE 7-3 Compute Activity Rates [LO7-3] 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 flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure 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 lawn Square feet of low maintenance beds Square feet of high maintenance beds 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 Activity Cost Pool Cost Expected Activity $72,000 150,000 square feet of lawn Caring for lawn Caring for garden beds-low maintenance .. $26,400 20,000 square feet of low maintenance beds Caring for garden beds-high $41,400 $3,250 $8,750 15,000 square feet of high maintenance beds 12,500 miles maintenance Travel to jobs ... Customer billing and service... 25 customers
Transcribed Image Text:LXINUIT 1-0. EXERCISE 7-3 Compute Activity Rates [LO7-3] 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 flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure 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 lawn Square feet of low maintenance beds Square feet of high maintenance beds 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 Activity Cost Pool Cost Expected Activity $72,000 150,000 square feet of lawn Caring for lawn Caring for garden beds-low maintenance .. $26,400 20,000 square feet of low maintenance beds Caring for garden beds-high $41,400 $3,250 $8,750 15,000 square feet of high maintenance beds 12,500 miles maintenance Travel to jobs ... Customer billing and service... 25 customers
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