Accounting Question…Activity Based Accounting?
Activity Cost PoolActivity Measure
Caring for lawnSquare feet of lawn
Caring for garden beds—low maintenanceSquare feet of low-maintenance beds
Caring for garden beds—high maintenanceSquare feet of high-maintenance beds
Travel to jobsMiles
Customer billing and serviceNumber of customers
Activity cost PoolEstimatedOverheadCostExpected Activity
Caring for lawn$77,400180,000square feet of lawn
Caring for garden beds—low maintenance$30,00024,000square feet of low-maintenance beds
Caring for garden beds high maintenance$57,60018,000square feet of high-maintenance beds
Travel to jobs$4,20015,000miles
Customer billing and service$8,70030customers
Activity Cost PoolActivity Rate
Caring for lawn$____________per square foot of lawn
Caring for garden beds— low maintenance$____________per square foot of low maintenance beds
Caring for garden beds— high maintenance$____________per square foot of high maintenance beds
Travel to jobs$__________
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Pool’s Mowing Service Professional Lawn Care Maintenance