Business, 19.10.2020 19:01 angelahouston8854

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 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 already completed its first stage allocations of costs and has summarized its annual costs and activity as follows:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Caring for lawn $ 85,000 175,000 square feet of lawn
Caring for garden beds–low maintenance $ 37,600 28,000 square feet of low maintenance beds
Caring for garden beds–high maintenance $ 62,700 22,000 square feet of high maintenance beds
Travel to jobs $ 4,000 19,000 miles
Customer billing and service $ 8,300 28 customers
Required:
Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

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