Homework Answers
| a. | Activity | Total cost | Total activity | Activity rate | |||
| a | b | c=a/b | |||||
| Gardening | 125425 | 17300 | hours | 7.25 | Per hour | ||
| Job support | 28134 | 1775 | jobs | 15.85 | Per job | ||
| Client support | 4530 | 280 | clients | 16.18 | Per client | ||
| b. | Customer margin: | ||||||
| $ | |||||||
| Price charged | 2500 | ||||||
| Less: Overhead assigned | (Note:1) | 1665.33 | |||||
| Customer margin | 834.67 | ||||||
| Note:1: | |||||||
| Overhead assigned: | |||||||
| Activity | Activity rate | Activity driver incurred | Overhead assigned | ||||
| a | b | a*b | |||||
| Gardening | 7.25 | Per hour | 175 | hours | 1268.75 | ||
| Job support | 15.85 | Per job | 24 | jobs | 380.40 | ||
| Client support | 16.18 | Per client | 1 | client | 16.18 | ||
| Total | 1665.33 | ||||||
| c. | Customer margin: | ||||||
| $ | |||||||
| Price charged | 2500 | ||||||
| Less: Overhead assigned | (Note:2) | 1599.5 | |||||
| Customer margin | 900.5 | ||||||
| Note:2 | |||||||
| Overhead assigned=Overhead application rate*Gardening hours used by the client | |||||||
| Overhead application rate=Total overhead cost to be assigned/Total gardening hours=(125425+28134+4530)/17300=$ 9.14 per gardening hour | |||||||
| Overhead assigned=9.14*175=$ 1599.50 | |||||||
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Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for...
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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 laws the wipe 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...
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for...
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...
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for...
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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 laws the wipe 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...
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...
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...
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