Question

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 already has 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
Caring for lawn	$	81,000	175,000	square feet of lawn
Caring for garden beds–low maintenance	$	33,600	28,000	square feet of low maintenance beds
Caring for garden beds–high maintenance	$	60,280	22,000	square feet of high maintenance beds
Travel to jobs	$	5,200	19,000	miles
Customer billing and service	$	10,700	22	customers

Answer 1

Please find below answer let me know if you need any clarification ..

	i	ii		iii=i/ii
Activity Cost Pool	Estimated	Expected Activity		Activity rate
	Overhead
	Cost
Caring for lawn	81,000	175,000	square feet of lawn	0.46	per square feet of lawn
Caring for garden beds–low maintenance	33,600	28,000	square feet of low maintenance beds	1.20	per square feet of low maintenance bed
Caring for garden beds–high maintenance	60,280	22,000	square feet of high maintenance beds	2.74	per square feet of high maintenance beds
Travel to jobs	5,200	19,000	miles	0.27	per miles
Customer billing and service	10,700	22	customers	486.36	per customer