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Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs...

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Accounting

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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 Square feet of lawn Caring for garden beds-tow maintenance Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenanceSquare feet of high maintenance beds Travel to jobs Customer billing and service Miles Number of customers

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