**Green Thumb Gardening: Activity-Based Costing Analysis**Green Thumb Gardening is a small gardening service utilizing activity-based costing to accurately estimate costs for pricing and other purposes. The company owner identifies costs as primarily influenced by factors such as the size of customer lawns, the size of customer garden beds, travel distances to customers, and the number of customers served. Garden bed maintenance costs also depend on whether the beds are low-maintenance (mainly ordinary trees and shrubs) or high-maintenance (mainly flowers and exotic plants). Therefore, Green Thumb Gardening employs five different activity cost pools as outlined below:**Activity Cost Pools and Measures:**| 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 completed its first-stage cost allocations, summarizing its annual costs and activity levels as follows:**Estimated Overhead and Expected Activity:**| Activity Cost Pool | Cost | Expected Activity ||--------------------------------------------------|------------|--------------------------------------------------------|| Caring for lawn | $86,600 | 180,000 square feet of lawn || Caring for garden beds—low maintenance | $39,200 | 29,000 square feet of low-maintenance beds || Caring for garden beds—high maintenance | $64,400 | 23,000 square feet of high-maintenance beds || Travel to jobs | $3,600 | 20,000 miles || Customer billing and service | $7,500 | 38 customers |**Required:**Compute the activity rate for each of the activity cost pools. *Note: Round your answers to two decimal places.***Activity Cost Pool and Rate Calculation:**| Activity Cost Pool | Activity Rate ||--------------------------------------------------|-----------------------------------------------------|| Caring for lawn | [Calculate] per square feet of lawn || Caring for garden beds—low maintenance | [Calculate] per square feet of low-maintenance beds || Caring for garden beds—high maintenance | [Calculate] per square feet of high-maintenance beds|| Travel

Activity Rate is the allocated rate used to allocate overheads . The calculate the rate the indirect…

y uses the five activity cost pools listed below: Square feet of lawn Square feet of low-maintenance beds Square feet of high-maintenance beds Miles Number of customers d its first-stage cost allocations and summarized its annual costs and activity as follows eds-low maintenance eds-high maintenance Activity Measure service

y uses the five activity cost pools listed below: Square feet of lawn Square feet of low-maintenance beds Square feet of high-maintenance beds Miles Number of customers d its first-stage cost allocations and summarized its annual costs and activity as follows eds-low maintenance eds-high maintenance Activity Measure service

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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