Green Thumb Gardening is a small gardening service using activitybased costing to estimate costs for pricing and other purposes. The owner of the company believes 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 depend on whether the beds are lowmaintenance beds mainly ordinary trees and shrubs or highmaintenance beds mainly flowers and exotic plants Accordingly, the company uses the five activity cost pools listed below:
tableActivity Cost Pool,Activity MeasureCaring for lawn,Square feet of lawnCaring for garden bedslow,Square feet of lowmaintenancemaintenance bedsCaring for garden bedshigh,Square feet of highmaintenancemaintenance bedsTravel to jobs,MilesCustomer billing and service,Number of customers
The company completed its firststage cost allocations and summarized its annual costs and activity as follows:
tabletableActivity Cost PoolCaring for lawnCaring for garden bedslowmaintenanceCaring for garden bedshighmaintenanceTravel to jobsCustomer billing and servicetableEstimatedOverhead CosttableExpected Activitysquare feet of lawnsquare feet of lowmaintenance bedssquare feet of highmaintenance beds miles$$$table$