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EXERCISE 7 3 Compute Activity Rates LO3 As You Like It Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes The proprietor of

EXERCISE 7–3 Compute Activity Rates [LO3]

As You Like It 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:

 

 

The company has already completed its first-stage allocations of costs. The company’s annual costs and activities are summarized as follows:

 

 

Required:

Compute the activity rate for each of the activity cost pools.

Jun 29 2020 View more View Less

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