Exercise 7.02 – SecuriCorp
Managerial Accounting
Garrison, Noreen, and Brewer
17th Edition
First stage allocations of costs to activity cost pools
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First stage allocations of costs to activity cost pools
Your numbers will vary.
Calculate the activity rate for each of the activity cost pools used by Green Thumb Gardening, a small gardening service that uses activity-based costing to estimate costs. The activity cost pools include the size of customer lawns, the size of customer garden beds, the distance to travel to customers, the number of customers, and the type of garden bed maintenance (low or high). Use the provided annual costs and activity information to determine the activity rate for each cost pool. Round your answers to two decimal places.
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Determine the total overhead cost would be assigned to K425 and M67 using the activity-based costing system.
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Compute customer margin
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Activity-Based Costing: Prepare report, compute rates, calculate OH and customer margin.
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