LawnCare USA provides lawn care and landscaping services to commercial clients. LawnCare USA uses activity-based costing to bid on jobs and to evaluate their profitability. LawnCare USA reports the...

Q.Allocate LawnCare USA’s costs to the activity-cost pools and determine the activity rate for each pool.

Extracted text: LawnCare USA provides lawn care and landscaping services to commercial clients. LawnCare USA uses activity-based costing to bid on jobs and to evaluate their profitability. LawnCare USA reports the following budgeted annual costs: Wages and salaries Depreciation Supplies Other overhead $360,000 72,000 ు.© 288,000 $840,000 Total overhead costs John Gilroy, controller of LawnCare USA, has established four activity cost pools and the following bud- geted activity for each cost poot: Activity Cost Pool Estimating jobs Total Activity for the Year 250 estimates Activity Measure Number of job estimates Lawn care Number of direct labor-hours 10,000 direct labor-hours 500 design hours Not applicable Landscape design Number of design hours Facility-sustaining costs that are not allocated to jobs Other Gilroy estimates that LawnCare USA's costs are distributed to the activity-cost pools as follows: Landscape Design 15% Estimating Jobs Lawn Care 70% Other 10% Total 100% Wages and salaries Depreciation Supplies Other overhead 5% 10% 65% 10% 15% 100% 0% 100% 0% 0% 100% 15% 50% 20% 15% 100% Sunset Office Park, a new development in a nearby community, has contacted LawnCare USA to provide an estimate on landscape design and annual lawn maintenance, The job is estimated to require a single landscape design requiring 40 design hours in total and 250 direct labor-hours annually. LawnCare USA has a policy of pricing estimates at 150% of cost.