Transcribed Image Text: Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places except customer billing

Transcribed Image Text: Required:
Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places except customer billing and
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 Transcribed Image Text: 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
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 maintenance 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:
Estimated
Overhead
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
Cost
Expected Activity
$ 72,000
$ 26,400
$ 41,400
$ 3,250
$ 8,750
150,000 square feet of lawn
20,000 square feet of low maintenance beds
15,000 square feet of high maintenance beds
12,500 miles
25 customers

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