Green Thumb 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 already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Green Thumb 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 already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

1. Cost drivers have a direct relationship with resources used. t or f

2. The Hi-Lo Method divides mixed costs into variable and fixed costs. t or f

3. Plant management is a batch-level activity. t or f

4. What is an important feature of the CVP income statement? a. is distributed internally and externally. b. classifies costs by department functions. c. reports contribution margin in the body of the statement. d. will reflect a different net income than the traditional income statement

5. Classify below activities as (V)alue-added or (N)on-value-added. ____ 1. Engineering design ____ 2. Machine repair ____ 3. Inventory storage ____ 4. Painting ____ 5. Assembly

6. Match the activity cost pools below (A to E) with the appropriate cost drivers for the law firm of West, Green, and Ink uses ABC to allocate its overhead costs. Use only one letter. A. Printing and photocopying. B. Secretarial support. C. Client support. D. Recruiting and training. E. Computer support. ______1. Computer processing minutes. ______2. Number of pages. ______3. Number of clients. ______4. Number of recruits. ______5. Direct professional hours

7. Apply the high-low for the data below Month Miles Total Cost January 80,000 $192,000 February 50,000 160,000 March 70,000 188,000 April 90,000 260,000. What is the total cost for May when 100,000 miles are expected to be driven? a. $235,000 b. $272,000 c. $228,000 d. $285,000

Green Thumb 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 already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

In this problem, we explore the effect on the standard deviation of multiplying each data value in a data set by the same constant. Consider the data set 4, 11, 11, 11, 7.

(a) Use the defining formula, the computation formula, or a calculator to compute s. (Round your answer to one decimal place.)
s =

(b) Multiply each data value by 2 to obtain the new data set 8, 22, 22, 22, 14. Compute s. (Round your answer to one decimal place.)
s =

(c) Compare the results of parts (a) and (b). In general, how does the standard deviation change if each data value is multiplied by a constant c?

Multiplying each data value by the same constant c results in the standard deviation increasing by c units. Multiplying each data value by the same constant c results in the standard deviation remaining the same.     Multiplying each data value by the same constant c results in the standard deviation being |c| times smaller. Multiplying each data value by the same constant c results in the standard deviation being |c| times as large.

(d) You recorded the weekly distances you bicycled in miles and computed the standard deviation to be s = 2.2 miles. Your friend wants to know the standard deviation in kilometers. Do you need to redo all the calculations?

Yes No    

Given 1 mile ≈ 1.6 kilometers, what is the standard deviation in kilometers? (Enter your answer to two decimal places.)
s = km

Used Cars - Actual Data: Below are the scatterplots, regression equations, and corresponding statistics for mileage, model year, and price for 15 different Honda Civics found on craigslist in May 2012.

Suppose you see a 2004 Honda Civic with 140 thousand miles on it. Estimate a reasonable price for this car via the following methods.

(a) Estimate the price using the mileage. Round your answer to the nearest dollar.
$

(b) Estimate the price using the year. Round your answer to the nearest dollar.
$

(c) Estimate the price using the multiple linear regression equation given by

ŷ = 716.9x₁ − 42.9x₂ − 1,424,349

where x₁ is the model year and x₂ is the mileage (in thousands). Round your answer to the nearest dollar.
$

(d) Which of the following statements are valid?

The estimate based only on mileage (part a) is too low because it doesn't consider the model year.

The estimate based only on the year (part b) is too high because it doesn't consider the mileage.     

The estimate from part (c) considers both variables (year and mileage) to produce a better estimate.

All of these are valid statements.

In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/15 $ 96,000 $ 6,500 5 Straight-line 2 1/1/15 122,000 12,000 5 Declining-balance 3 1/1/16 93,000 9,000 4 Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were 2016, 24,000; 2017, 35,500; and 2018, 32,000. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ per mile Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 $ BUS 2 $ BUS 3 $ If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2015 and (2) 2016? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2015 (2) 2016 Depreciation expense $ $

Green Thumb 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 already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

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

In this problem, we explore the effect on the standard deviation of multiplying each data value in a data set by the same constant. Consider the data set 14, 16, 13, 7, 8.

(a) Use the defining formula, the computation formula, or a calculator to compute s. (Round your answer to one decimal place.)
s =

(b) Multiply each data value by 7 to obtain the new data set 98, 112, 91, 49, 56. Compute s. (Round your answer to one decimal place.)
s =

(c) Compare the results of parts (a) and (b). In general, how does the standard deviation change if each data value is multiplied by a constant c?

Multiplying each data value by the same constant c results in the standard deviation being |c| times as large.Multiplying each data value by the same constant c results in the standard deviation increasing by c units.    Multiplying each data value by the same constant c results in the standard deviation remaining the same.Multiplying each data value by the same constant c results in the standard deviation being |c| times smaller.

(d) You recorded the weekly distances you bicycled in miles and computed the standard deviation to be s = 2.9 miles. Your friend wants to know the standard deviation in kilometers. Do you need to redo all the calculations?

YesNo    

Given 1 mile ≈ 1.6 kilometers, what is the standard deviation in kilometers? (Enter your answer to two decimal places.)
s =  km