Question

Greener Garden USA provides lawn care and landscaping services to commercial clients. Greener Garden USA uses activity-based costing to bid on jobs and to evaluate their profitability. Greener Garden USA reports the following budgeted annual costs: (Click the icon to view budgeted annual costs.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Allocate Greener Garden USA's costs to the activity-cost pools and determine the activity rate for each pool. Start by allocating Greener Garden USA's costs to the activity-cost pools. (Enter zero in any cell if no amount should be allocated to the activity-cost pool.) Estimating Lawn Landscape jobs care design Other Total Wages and salaries Depreciation Supplies Other overhead Total

Answer 1

Activity cost pool

	Estimating jobs	Lawn Care	Landscape design	Other	Total
Wages and salaries	22000	308000	88000	22000	440000
Depreciation	5200	26000	7800	13000	52000
Supplies	0	100000	0	0	100000
Other overhead	32400	64800	40500	24300	162000
Total	59600	498800	136300	59300	754000

Activity rate

Overhead	Estimated overhead	estimated activity	Activity rate
Estimating jobs	59600	300	198.67 per estimate
Lawn care	498800	10000	49.88 per hour
Landscape design	136300	125	1090.40 per design hour