Exercise 7.03 – Green Thumb Gardening

Managerial Accounting

Garrison, Noreen, and Brewer

17th Edition

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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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