Solution-Compute the activity rate for each of the activity

Compute the activity rate for each of the activity cost pool

Assignment Help Accounting Basics

Reference no: EM131000506

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 has already completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Activity cost Pool	Estimated Overhead Cost		Expected Activity
Caring for lawn	$	79400	180000	square feet of lawn
Caring for garden beds–low maintenance	$	32000	22000	square feet of low maintenance beds
Caring for garden beds–high maintenance	$	44000	16000	square feet of high maintenance beds
Travel to jobs	$	4000	13000	miles
Customer billing and service	$	8300	36	customers

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM131000506

Questions Cloud

Some of the ways the entrepreneur recognizes opportunities : Should innovation activities be linked to our efforts to develop a strategic advantage or should innovation efforts be experimental with an objective of finding products or services that may be profitable at some indefinite point?

Suppose that the demand for certain drugs : Suppose that the demand for certain drugs is QN=100-P in North America and QS=100a-P in Sub-Saharan Africa where a 0.531 if the drug manufacturer is to serve both markets while charging the same price in each market.

Variable costs associated with the wind farm : Assuming that there are no variable costs associated with the wind farm, the capacity factor CF=40%. What is the fixed charge rate FCR?

Regarding the federal appellate court systems : Which of the following is true regarding the federal appellate court system's use of ADR?

Compute the activity rate for each of the activity cost pool : 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 cu..

Discuss the situation and indicate why johns opinion : At the end of 2011, the Biggie Company performed its annual physical inventory count. John Lawrence, the manager in charge of the physical count,

Labor contract provides for a first-year wage : A labor contract provides for a first-year wage of $15.00 per hour and specified that the real wage will rise by 5 percent in the second year of the contract and by 7.5 percent in the third year. The CPI is 1.00 in the first year, 1.02 in the second ..

What should be the radius of curvature : A plastic plano-convex lens of refactive index 1.46 is placed above the dial of a watch at a distance of 1 cm to serve as its cover. If we need a magnification of 4, what should be the radius of curvature?

Period of supernormal growth : Now assume that TTC's period of supernormal growth is to last another 5 years rather than 2 years. How would this affect its price, dividend yield, and capital gains yield? Answer in words only.

User Account

All Pages

Compute the activity rate for each of the activity cost pool

Reference no: EM131000506

Reference no: EM131000506

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT