Green Thumb Landscaping (GTL) provides landscaping and lawn care service to both residential and commercial customers....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Green Thumb Landscaping (GTL) provides landscaping and lawn care service to both residential and commercial customers. Its landscaping service designs lawns, which can result in planting new shrubs, trees, flowers, as well as installing new turf. The company provides free estimates of the cost for new designs. GTL also provides routine lawn care services for two types of lawns: low-maintenance lawns (primarily pruning trees and shrubs) and high maintenance lawns (routine grass cutting and maintenance of flower beds). The company uses a job costing system that tracks costs for each job and by customer types (residential and commercial). Currently, the company views its operations as offering three types of services: installing new lawns, providing low-maintenance, and providing high- maintenance. When installing new lawns, the company purchases trees, shrubs, flowers, and turf from various suppliers, as well as stones and rocks used in landscaping, and treats these costs as a direct cost (direct materials) for a specific job. For each type of service provided, the company is able to track direct labor (the hours spent installing new lawns or maintaining lawns). Such labor costs are variable. When workers are unassigned, or traveling to jobs, their hours are recorded as indirect labor (an overhead cost). Fixed indirect costs include depreciation on tools and equipment, rent expense for trucks and heavy equipment, and salaries for lawn care supervisors. Variable indirect costs includes miscellaneous supplies, fuel for equipment, workers' equipment such as gloves and hats, For supporting its operations, the company has three service departments: landscape design, administration, and accounting & finance (billing customers, collecting accounts receivable, issuing purchase orders, and paying accounts payable). Below is budgeted data for the company's 3 types of services. Budgeted Data for Operations Number of Jobs Direct Materials (trees, shrubs, flowers, turf, stones, and rocks Direct Labor (wages paid to full-time & part-time employees Direct Labor hours Budgeted Indirect Costs for Operations Indirect Labor Green Thumb Landscaping Depreciation on Tools & Equipment Rent Expense for Trucks & Heavy Equipment Salaries of Operations Supervisors Total Budgeted Cost for Central Office Office Rent & Utilities Office Salaries Green Thumb Landscaping Budgeted Data for Year 2 New Lawn Installations Landscape Designers Salaries Marketing Expenses Total 250 $630,000 $120,000 4,000 $216,000 $400,000 $110,000 $540,000 $1,266,000 $108,000 $240,000 Low Maintenance Lawns $280,000 $60,000 $688.000 450 $90,000 $144,000 7,200 Budgeted Indirect Costs include both indirect costs from operations (indirect labor, depreciation on tools & equipment, etc.) and indirect costs from the central office (office rent & utilities, office salaries, etc.). High Maintenance Lawns 300 $180.000 $216,000 8,640 Total 1,000 $900,000 $480.000 19,840 1. Compute the predetermine rate for operations indirect costs, using direct labor hours as the allocations basis (round to 4 decimal places). 2. Compute the predetermined rate for central office costs, using number of jobs as the allocation basis (round to 4 decimal places). Actual Data from Operations Number of Jobs Direct Materials (trees, shrubs, flowers, turf, stones, and rocks Direct Labor (wages paid to full-time & part-time employees Direct Labor hours Actual Indirect Costs from Operations Indirect Labor Depreciation on Tools & Equipment Rent Expense for Trucks & Heavy Equipment Salaries of Operations Supervisors Total Actual Cost for Central Office Office Rent & Utilities Office Salaries Landscape Designers Salaries Marketing Expenses Total Actual Data for Year 2 New Lawn Installations Actual Data from Operations Number of Jobs Direct Materials (trees, shrubs, flowers, turf, stones, and rocks Direct Labor (wages paid to full-time & part-time employees Direct Labor hours Allocated Indirect Costs from Operations Allocated indirect Costs from Central Office Total Allocation Actual Indirect Costs Over/Under Allocated 300 $730,000 $140,800 4,400 $240,000 $370,000 $130,000 $500,000 $1,240,000 $100,000 $200,000 $300,000 $50,000 $650.000 New Lawn Installations 300 Low Maintenance Lawns $730,000 $140,800 4,400 420 In general, complete the cost-profit analysis worksheet shown below. Then answer specific questions for Homework. $100,000 $145,200 6,600 Low Maintenance Lawns 420 High Maintenance Lawns $100,000 $145,200 6,600 320 $234,000 $216,000 9,000 High Maintenance Lawns Total 320 $234,000 $216,000 9,000 $1,064,000 $502,000 20,000 1,040 Total 1,040 $1,064,000 $502,000 20,000 Based on actual performance data, compute the total allocation of indirect costs (from operations and from central office) and rounded to two decimal places, for... 3. New Law Installations 4. Low Maintenance Lawns 5. High Maintenance Lawns Did the company over-allocate or under-allocate its total indirect costs (the combination of operations and central office)? 6. Enter the amount over / under allocated. Does the variance increase or decrease operating income? A decrease in operating income is not profeened and Untavorable Thus, we will ender antavorable variance puch overhead that is anderapped) as a negativ umber because it decreases reported operating income. An increase in operating income is preferred and Favorable Thus, we will aber favorable arrance (sch overhead that is overled) as a pote umber because it increases reported operating income Green Thumb Landscaping (GTL) provides landscaping and lawn care service to both residential and commercial customers. Its landscaping service designs lawns, which can result in planting new shrubs, trees, flowers, as well as installing new turf. The company provides free estimates of the cost for new designs. GTL also provides routine lawn care services for two types of lawns: low-maintenance lawns (primarily pruning trees and shrubs) and high maintenance lawns (routine grass cutting and maintenance of flower beds). The company uses a job costing system that tracks costs for each job and by customer types (residential and commercial). Currently, the company views its operations as offering three types of services: installing new lawns, providing low-maintenance, and providing high- maintenance. When installing new lawns, the company purchases trees, shrubs, flowers, and turf from various suppliers, as well as stones and rocks used in landscaping, and treats these costs as a direct cost (direct materials) for a specific job. For each type of service provided, the company is able to track direct labor (the hours spent installing new lawns or maintaining lawns). Such labor costs are variable. When workers are unassigned, or traveling to jobs, their hours are recorded as indirect labor (an overhead cost). Fixed indirect costs include depreciation on tools and equipment, rent expense for trucks and heavy equipment, and salaries for lawn care supervisors. Variable indirect costs includes miscellaneous supplies, fuel for equipment, workers' equipment such as gloves and hats, For supporting its operations, the company has three service departments: landscape design, administration, and accounting & finance (billing customers, collecting accounts receivable, issuing purchase orders, and paying accounts payable). Below is budgeted data for the company's 3 types of services. Budgeted Data for Operations Number of Jobs Direct Materials (trees, shrubs, flowers, turf, stones, and rocks Direct Labor (wages paid to full-time & part-time employees Direct Labor hours Budgeted Indirect Costs for Operations Indirect Labor Green Thumb Landscaping Depreciation on Tools & Equipment Rent Expense for Trucks & Heavy Equipment Salaries of Operations Supervisors Total Budgeted Cost for Central Office Office Rent & Utilities Office Salaries Green Thumb Landscaping Budgeted Data for Year 2 New Lawn Installations Landscape Designers Salaries Marketing Expenses Total 250 $630,000 $120,000 4,000 $216,000 $400,000 $110,000 $540,000 $1,266,000 $108,000 $240,000 Low Maintenance Lawns $280,000 $60,000 $688.000 450 $90,000 $144,000 7,200 Budgeted Indirect Costs include both indirect costs from operations (indirect labor, depreciation on tools & equipment, etc.) and indirect costs from the central office (office rent & utilities, office salaries, etc.). High Maintenance Lawns 300 $180.000 $216,000 8,640 Total 1,000 $900,000 $480.000 19,840 1. Compute the predetermine rate for operations indirect costs, using direct labor hours as the allocations basis (round to 4 decimal places). 2. Compute the predetermined rate for central office costs, using number of jobs as the allocation basis (round to 4 decimal places). Actual Data from Operations Number of Jobs Direct Materials (trees, shrubs, flowers, turf, stones, and rocks Direct Labor (wages paid to full-time & part-time employees Direct Labor hours Actual Indirect Costs from Operations Indirect Labor Depreciation on Tools & Equipment Rent Expense for Trucks & Heavy Equipment Salaries of Operations Supervisors Total Actual Cost for Central Office Office Rent & Utilities Office Salaries Landscape Designers Salaries Marketing Expenses Total Actual Data for Year 2 New Lawn Installations Actual Data from Operations Number of Jobs Direct Materials (trees, shrubs, flowers, turf, stones, and rocks Direct Labor (wages paid to full-time & part-time employees Direct Labor hours Allocated Indirect Costs from Operations Allocated indirect Costs from Central Office Total Allocation Actual Indirect Costs Over/Under Allocated 300 $730,000 $140,800 4,400 $240,000 $370,000 $130,000 $500,000 $1,240,000 $100,000 $200,000 $300,000 $50,000 $650.000 New Lawn Installations 300 Low Maintenance Lawns $730,000 $140,800 4,400 420 In general, complete the cost-profit analysis worksheet shown below. Then answer specific questions for Homework. $100,000 $145,200 6,600 Low Maintenance Lawns 420 High Maintenance Lawns $100,000 $145,200 6,600 320 $234,000 $216,000 9,000 High Maintenance Lawns Total 320 $234,000 $216,000 9,000 $1,064,000 $502,000 20,000 1,040 Total 1,040 $1,064,000 $502,000 20,000 Based on actual performance data, compute the total allocation of indirect costs (from operations and from central office) and rounded to two decimal places, for... 3. New Law Installations 4. Low Maintenance Lawns 5. High Maintenance Lawns Did the company over-allocate or under-allocate its total indirect costs (the combination of operations and central office)? 6. Enter the amount over / under allocated. Does the variance increase or decrease operating income? A decrease in operating income is not profeened and Untavorable Thus, we will ender antavorable variance puch overhead that is anderapped) as a negativ umber because it decreases reported operating income. An increase in operating income is preferred and Favorable Thus, we will aber favorable arrance (sch overhead that is overled) as a pote umber because it increases reported operating income
Expert Answer:
Answer rating: 100% (QA)
Please hit like button if this helped The predetermine rate for operations indirect costs Total indi... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these accounting questions
-
Green Thumb Lawn Care Service provides lawn care service to clients located throughout the region. It offers two levels of service full service (watering, mowing, fertilizing, trimming, and edging)...
-
A large firm of solicitors uses a job costing system to identify costs with individual clients. Hours worked by professional staff are used as the basis for charging overhead costs to client...
-
Ava Advertising Agency (AAA) uses a job costing system for all its advertising projects. Since the advertising agency is a labour-intensive business, AAA set a policy to allocate/apply overhead costs...
-
On average, do people prefer a... 6 game package with 300-level, mid-court seats and a $20 gift certificate for $35/seat or a 3 game package with 300-level, corner seats that come with a hotdog and...
-
A game involving chance is said to be a fair game if the expected amount won or lost is zero. Consider the following arcade game. A player pays $1 and chooses a number from 1 to 10. A spinning wheel...
-
Jack is starting a business that he expects to produce $60,000 of income this year before compensating Jack for his services. He has $1,000 of other income and itemized deductions totaling $10,000....
-
The following is a general result from matrix theory: Let $\mathbf{A}$ be an $m \times n$ matrix. Suppose that the equation $\mathbf{A x}=\mathbf{p}$ can achieve no $\mathbf{p} \geq \mathbf{0}$...
-
You have been hired as a marketing research analyst by P&G. Your boss, the market manager, is wondering whether the market for toothpaste can be segmented based on the benefits consumers seek while...
-
Some time ago my mother in law came to visit us. While visiting, I noticed her talent in knitting beautiful woolen scarves. I asked her if she was interested in selling them in our boutique and she...
-
1. (40 points) For the open-loop plant dynamics from (2.3.2), determine the closed-loop transfer function from the reference input R(s) to the shaft angle output (s) when using a Proportional...
-
Write method requirements: [15 points] countVowelsAndConsonants() in your MyArrayBag class that accomplishes the following set of Create three bags that can hold strings. One bag is named letters and...
-
Why might the requirements and needs of investors prioritizing green and sustainable finance be different from those of any other investor?
-
The entrepreneurial spirit fuels growth in the U.S. economy. Choose a company that interests youone you have worked for or dealt with as a customerand read about the company by visiting its website....
-
What initiatives can you identify in markets with which you are familiar that seek to apply FinTech tools and techniques to green and sustainable corporate banking and capital markets activities?
-
What opportunities might FinTech offer for green finance?
-
How else might finance help to encourage energy efficiency?
-
QF09/2612-4.0E 23. Consider the following MATLAB commands: count = 0; i=1; while (i
-
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
In January 2012, Herdt Company is trying to decide whether to buy one, both, or neither of the following investments. Herdt Companys cost of capital is 16 percent and its tax rate is 30 percent....
-
Analyze the following events and complete the requirements. A. Yarber Industries purchased buildings costing $ 240,000 and land costing $ 190,000 by paying $ 43,000 in cash and signing a note payable...
-
Describe the cash inflows and outflows of a lump-sum payment (noninterest-bearing) note shown on the budgeted statement of cash flows.
-
What risk factors should a team consider when deciding whether to build and fund a new venue? How are the risk factors different if a municipality is funding the construction?
-
What must players and agents understand about risk? How should an agent structure a players contract if it contains deferred compensation?
-
If you were advising an investor interested in purchasing a sport franchise, what advice would you give?
Study smarter with the SolutionInn App