=+6-46 KK Choosing cost drivers, activity-based costing, activity-based management OBJECTIVES 5, 7, 8 Jojo runs a dance studio with childcare and adult fitness classes. Jojo’s budget for the upcoming year is as follows:

Jojo’s Dance Studio Budgeted costs and activities for the year ended 30 June 2013 Dance teacher salaries—school year $48 600 Dance teacher salaries—summer program 13 500 Child care teacher salaries 24 300 Fitness instructor salaries 39 060 Total salaries $125 460 Supplies (art, dance accessories, fitness) 21 984 Rent, maintenance and utilities 97 511 Administration salaries 50 075 Marketing expenses 21 000 Total $316 030 Other information:

Dance classes 3 per hour Hours of operation (Dance, Childcare and Fitness)—school year (36 weeks) 2–8 pm Mon.–Fri.

Hours of operation (Dance, Childcare and Fitness)—summer program

(10 weeks)

9 am–noon; 1–4 pm Mon.–Fri.

Other information:

Dance Childcare Fitness Total Square metres 6 000 3 150 2 500 11 650 Number of participants 1 485 450 270 2 205 Teachers per hour 3 3 1 7 Number of advertisements 26 24 20 70 Required 1 Determine which costs are direct costs and which costs are indirect costs of the different programs.