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The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as fo

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Answer #1
Activity Cost Pool Activity rate [Refer working note]
Caring for lawn $0.51 per square feet of lawn
Caring for garden beds - low maintenance $1.44 per square feet of low maintenance beds
Caring for garden beds - high maintenance $2.67 per square feet of high maintenance beds
Travel to jobs $0.30 per mile
Customer billing and service $412.50 per customer

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Working note 1 - Calculation of Activity rates
Activity Cost Pool Estimated overhead cost Estimated activity Activity rate
(a) (b) (a / b)
Caring for lawn $83,400        165,000 square feet of lawn $0.51 per square feet of lawn
Caring for garden beds - low maintenance $36,000          25,000 square feet of low maintenance beds $1.44 per square feet of low maintenance beds
Caring for garden beds - high maintenance $50,730          19,000 square feet of high maintenance beds $2.67 per square feet of high maintenance beds
Travel to jobs $4,800          16,000 miles $0.30 per mile
Customer billing and service $9,900                 24 customers $412.50 per customer
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