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    Preparing ABC Analysis Report

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    As You Like It 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 cost 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:

    Activity Cost Pool
    Activity Measure

    Caring for lawn
    Square feet of lawn

    Caring for garden beds-low maintenance
    Square feet of low-maintenance beds

    Caring for garden beds-high maintenance
    Square feet of high-maintenance beds

    Travel to jobs
    Miles

    Customer billing and service
    Number of customers

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    The company has already carried out its first-stage allocations of costs. The company's annual costs and activities are summarized as follows:

    Activity cost Pool_____Estimated Overhead Cost____Expected Activity

    Caring for lawn____$77,400___180,000 square feet of lawn

    Caring for garden beds-low maintenance____$30,000___24,000 square feet of low-maintenance beds

    Caring for garden beds high maintenance___$57,600___18,000 square feet of high-maintenance beds

    Travel to jobs___$4,200___15,000 miles

    Customer billing and service___$8,700___30customers

    Determine the Appropriate Selling Price for a single Job with the following dimensions:
    -Lawn:200,000 square feet
    -High Maintenance Garden: 20000 square feet
    -Travel 200 miles
    -Number of Customers: 1 customer (assume a 10% profit margin and a cost-based pricing model)

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    https://brainmass.com/business/accounting/preparing-abc-analysis-report-490971

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