Question

Trimmer Lawn USA provides lawn care and landscaping services to commercial clients. Trimmer Lawn USA uses activity-based costing to bid on jobs and to evaluate their profitability, Trimmer Lawn 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 Trimmer Lawn USA's costs to the activity-cost pools and determine the activity rate for each pool. Start by allocating Trimmer Lawn 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

1		Estimating jobs	Lawn care	Landscape design	Other	Total
	Wages and Salaries (cost x respective percentage)	15,000	165,000	75,000	45,000	300,000
	Depreciation	10,400	23,400	5,200	13,000	52,000
	Supplies	-	110,000	-	-	110,000
	Other Overhead	11,900	95,200	23,800	107,100	238,000
	Total	37,300	393,600	104,000	165,100	700,000
		Cost	Allocation Base	Allocation Rate
2	Estimating Jobs	37,300	200 estimates	$186.50	/estimate
	Lawn Care	393,600	10,000 DLHs	$39.36	/DLH
	Landscape Design	104,000	600 design hours	$173.33	/design hour