Required:Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places except customer billing andservice.)Activity Cost PoolActivity RateCaring for lawnper square ft of lawnCaring for garden beds-low maintenanceper square ft of low maintenance bedsCaring for garden beds-high maintenanceper square ft of high maintenance bedsTravel to jobsper mileCustomer billing and serviceper customer 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 gardenbeds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends onwhether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exoticplants). Accordingly, the company uses the five activity cost pools listed below:Activity Cost PoolCaring for lawnCaring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceActivity MeasureSquare feet of lawnSquare feet of low maintenance bedsSquare feet of high maintenance bedsMilesNumber of customersThe company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:EstimatedOverheadActivity Cost PoolCaring for lawnCaring for garden beds-low maintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceCostExpected Activity$ 72,000$ 26,400$ 41,400$ 3,250$ 8,750150,000 square feet of lawn20,000 square feet of low maintenance beds15,000 square feet of high maintenance beds12,500 miles25 customers

The activity rate is calculated as estimated overhead cost for each activity divided by expected…

Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places except customer billing service.) Activity Cost Pool Activity Rate Caring for lawn per square ft of lawn Caring for garden beds-low maintenance per square ft of low maintenance beds Caring for garden beds-high maintenance per square ft of high maintenance beds Travel to jobs per mile Customer billing and service per customer

Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places except customer billing service.) Activity Cost Pool Activity Rate Caring for lawn per square ft of lawn Caring for garden beds-low maintenance per square ft of low maintenance beds Caring for garden beds-high maintenance per square ft of high maintenance beds Travel to jobs per mile Customer billing and service per customer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PB: Pocket Umbrella, Inc. is considering producing a new type of umbrella. This new pocket-sized...

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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 maintenancebeds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Required:Compute the activity rate for each of the activity cost pools.
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:
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 Square feet of 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 Miles Customer billing and service Number of customers The company already has completed its first-stage allocations of costs and…
Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for pricing and other purposes. The owner of the company believes 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 depend 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 Square feet of 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 Miles Customer billing and service Number of customers The company completed its first-stage cost allocations and summarized its annual costs and…
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Bradford Watch Company manufactures luxury and sports watches both for male and female customers. The luxury watches are famous for the high-end design materials while the sports watches are popular for their utilities. The company uses a traditional costing system in assigning overhead costs to the products on the basis of direct labour hours. However, the Production Manager seeks to replace the existing system with the Activity-based Costing (ABC) system to keep control over costs and offer more competitive pricing. After reviewing the existing costing system and interviewing the company’s personnel in relevant departments, the accountant compiled a report highlighting resources and costs involved in manufacturing watches per month: The following table lists out the overhead cost: Activity cost pool Overhead cost (£) Additional Notes Job-order set up 33,000 Procurement and placement 360,000 Installation of winding system 195,000 An auto winding…
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