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Question: green thumb gardening is a small gardening service that uses...

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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 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 has already 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 $ 80,200     170,000 square feet of lawn
  Caring for garden beds–low maintenance $ 32,800     26,000 square feet of low maintenance beds
  Caring for garden beds–high maintenance $ 56,800     20,000 square feet of high maintenance beds
  Travel to jobs $ 4,200     17,000 miles
  Customer billing and service $ 8,700     38 customers

  

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Activity Cost Pool Activity Rate
Caring for lawn per square foot of lawn
Caring for garden beds—low maintenance per square foot of low maintenance beds
Caring for garden beds—high maintenance per square foot of high maintenance beds
Travel to jobs per mile
Customer billing and service per customer
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