**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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Zamboanga Hospital plans to use the activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: (Refer to image) Determine the activity cost associated with Patient 2. a. P1,388 b. P 908 c. P1,816 d. P4,555
Standard costs are divided into which of the following components? A. price standard and quantity standard B. quality standard and quantity standard C. variance standard and quantity standard D. materials standard and labor standard Which of the following activity bases would be the most appropriate for food costs of a hospital? A. how many MRI's are taken B. number of patients who stay in the hospital C. quantity of prescriptions filled D. number of nurses scheduled to work To calculate income from operations, total service department charges are A. subtracted from operating expenses B. subtracted from income from operations before service department charges C. subtracted from gross profit margin D. added to income from operations before service department charges
Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Supplies Patient services Activity Cost Driver Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Budgeted Cost $ 2,310,000 39,000 294,000 Service General surgery Orthopedic surgery Surgical Hours 2,600 8,400 Patients 300 200 Square Feet 720 1,380 Usage 11,000 500 2,100 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit.
Check image file for question Q1a. Allocate the service department costs to the two operating departments using the direct method. b.Allocate the service department cost to the two operating departments using ,I)the step-down method (Allocate administrative service first) . ii)the step down method (Allocoate Maintenance service first) c. Assuming you are the manager of the Daily Patient department.Discuss which method of cost allocation would you prefer.Justify your decision d.Mr Smith the financial controller of LabAid is convinced that the step-down method allocates more costs to the operating departments than the direct method.Do you agree with ,Mr Smith.Explain.
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1. Compute an activity rate for each activity using activity-based costing.
Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 38,000 800 500 1,300 Activity 2 $ 29,040 780 600 1,380 Activity 3 $ 26,600 900 650 1,550 The activity rate under the activity-based costing system for Activity 3 is:
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Question Content Area Activity rates and product costs using activity-based costing Idris Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $640,000 Machine hours Assembly 125,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 28,000 Number of setups Materials handling 20,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000…
Match the following cost units with the following services: Service Cost unit Electricity generation Passenger miles Restaurants Patient days Carriers Miles travelled Hospitals Meals served Passenger transport Kilowatt hours
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Which one of the following options can be used when allocating cafeteria costs? Select one: a. Number of square feet b. Appraised value of square footage c. Number of direct labor hours d. Number of employees