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...


The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden<br>beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on<br>whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic<br>plants). Accordingly, the company uses the five activity cost pools listed below:<br>Activity Cost Pool<br>Caring for lawn<br>Caring for garden beds-low maintenance<br>Caring for garden beds-high maintenance<br>Travel to jobs<br>Customer billing and service<br>Activity Measure<br>Square feet of lawn<br>Square feet of low imaintenance beds<br>Square feet of high maintenance beds<br>Miles<br>Number of customers<br>The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:<br>Activity Cost Pool<br>Caring for lawn<br>Caring for garden beds-low maintenance<br>Caring for garden beds-high maintenance<br>Travel to jobs<br>Customer billing and service<br>Estimated<br>Overhead<br>Cost<br>$ 83,400<br>$ 36,000<br>$ 50,040<br>$ 5,000<br>$ 10,300<br>Expected Activity<br>165,000 square feet of lawn<br>24,000 square feet of low hiaintenance beds<br>18,000 squane feet of high maintenance beds<br>15,000 miles<br>24 customers<br>Required:<br>Compute the activity rate for each of the activity cost pools. (Round youn answers to 2 decimal places.)<br>Activity Cost Pool<br>Activity Rate<br>Caring for lawn<br>per square ft of lawn<br>Caring for garden beds-low maintenance<br>per square ft of low maintenance beds<br>Caring for garden beds-high maintenance<br>per square ft of high maintenange beds<br>Travel to jobs<br>per mile<br>Customer billing and service<br>per customer<br>

Extracted text: 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 Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low imaintenance beds Square feet of high maintenance beds Miles 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 Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Estimated Overhead Cost $ 83,400 $ 36,000 $ 50,040 $ 5,000 $ 10,300 Expected Activity 165,000 square feet of lawn 24,000 square feet of low hiaintenance beds 18,000 squane feet of high maintenance beds 15,000 miles 24 customers Required: Compute the activity rate for each of the activity cost pools. (Round youn answers to 2 decimal places.) 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 maintenange beds Travel to jobs per mile Customer billing and service per customer
Jun 11, 2022
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