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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
$
79400
180000
square feet of lawn
32000
22000
square feet of low maintenance beds
44000
16000
square feet of high maintenance beds
4000
13000
miles
8300
36
customers
Required:
Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
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