Compute the activity rate for each of the activity cost pool

Assignment Help Accounting Basics
Reference no: EM131697997

Question - 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 has summarized its annual costs and activity as follows:

Activity Cost Pool

Estimated Overhead Cost

Expected Activity

Caring for lawn

$79,400

175,000 square feet of lawn

Caring for garden beds-low maintenance

$32,000

27,000 square feet of low maintenance beds

Caring for garden beds-high maintenance

$56,700

21,000 square feet of high maintenance beds

Travel to jobs

$4,200

18,000 miles

Customer billing and service

$8,700

24 customers

Required - Compute the activity rate for each of the activity cost pools.

Reference no: EM131697997

Questions Cloud

Explain the cost behavior as the level of production change : Identify the major differences and similarities between financial and managerial accounting. LO2: Use basic managerial accounting terminology and vocabulary
Why is some degree of monopoly power permitted : Based on what you read do you think Google is a harmful monopoly that should be subject to US anti-trust action. Why is some degree of monopoly power permitted?
Create a statement describing the value of your restaurant : Evaluate the impact assessing value has on pricing strategy and profitability, and the importance of market segmentation.
Describe the relationship among employee recruitment : 1. Describe the relationship among employee recruitment, employee selection, and firm performance.
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
Importance of international assignments : Discuss the importance of international assignments and identify issues such assignments raise for human resource managers.
Part of the designated bargaining unit : True or False: The worker must be part of the designated bargaining unit in order to vote in the election.
Research about the information of demographic and policy : List the Web sites or periodicals you will be using. You will compare the budgets of two municipalities (cities) or nonprofit agencies.
Explain what are conditions that create perfect competition : Explain What are the conditions that create perfect competition? Name or describe an example of a perfectly competitive good or firm.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd