Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) As You Like It Gardening is small gardening service which uses activity-based costing to evaluate costs for pricing and other purposes. Proprietor of company thinks that costs are driven mainly by size of customer lawns, size of customer garden beds, distance to travel to customers, and number of customers. Additionally, cost of maintaining garden beds depends on whether beds are low-maintenance beds (primarily ordinary trees and shrubs) or high-maintenance beds (primarily flowers and exotic plants). Accordingly, company uses five activity cost pools given 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

Company has already performed its first-stage allocations of costs. Company's annual costs and activities are summarized as follows:

Activity cost Pool  Estimated Overhead Cost Expected Activity 
Caring for lawn  $77400 180,000 square feet of lawn 
Caring for garden beds-low maintenance  $30000 24,000 square feet of low-maintenance beds 
Caring for garden beds high maintenance  $57600 18,000 square feet of high-maintenance beds 
Travel to jobs  $4200 15,000 miles 
Customer billing and service  $8700 30 customers 

problems:

find out activity rate for each of activity cost pools.

Activity Cost Pool Activity Rate
Caring for lawn $0.43 per square foot of lawn
Caring for garden beds- low maintenance $1.25 per square foot of low maintenance beds
Caring for garden beds- high maintenance $3.2 per square foot of high maintenance beds
Travel to jobs $0.28 per mile
Customer billing and service $290 per customer

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918868

Have any Question? 


Related Questions in Accounting Basics

Final paperwrite a five- to seven-page financial statement

Final Paper Write a five- to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial healt ...

In a recent city meeting it was agreed that the city was

In a recent city meeting, it was agreed that the city was going to build a new town hall. Long-term bonds, intergovernmental transfers, and public donations will be used to construct and maintain the building. The major ...

Grana enterprise incgrana enterprise inc gei is a

Grana Enterprise Inc. Grana Enterprise Inc. (GEI) is a manufacturing company with operations in Italy and Serbia. GEI in Italy: In addition to other assets, GEI owns and operates a commercial building in Italy that is ca ...

Accounting discussion questionbulluse the internet to

Accounting Discussion Question • Use the Internet to research an annual report of a retail company. • Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or credit ...

Part 1true false questionsselect the correct answer1 a

Part 1: True / False Questions Select the correct answer 1. A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates. True False 2. The use of a predeterm ...

Accounting questionwhat are the advantages to the

Accounting Question: What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantages to the acquiring entity? ...

You are the auditor for a company and need to review the

You are the auditor for a company and need to review the company's accounts receivable using probability proportional to size (PPS) sampling. In addition, the board of directors has requested that you and your team prese ...

1 the prices of financial assets are based on the expected

1. The prices of financial assets are based on the expected value of future cash flows, discount rate, and past dividends. A. True B. False 2. By using different discount rates, the market allocates capital to companies ...

Principles of accountingthe accounting cyclequestion

Principles of Accounting The Accounting Cycle Question A • Explain why temporary accounts are closed each period. Question B • Identify the 10 steps in the accounting cycle.

1 you are the manager of a payroll system your company is

1. You are the manager of a payroll system. Your company is going to replace the legacy payroll system with a more robust, Web-based version. Suggest two approaches that would minimize downtime and interruption to the pa ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen