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Bonita Consulting provides weekly payroll processing for a number of small businesses. Gia Bonita, the company's owner, has been using an activity-based costing system for
Bonita Consulting provides weekly payroll processing for a number of small businesses. Gia Bonita, the company's owner, has been using an activity-based costing system for several years. She used the following information in preparing this year's budget. Activity Cost Pool Total Cost Cost Driver Setting up new employees $ 91,750 Number of new employees Processing weekly payroll $ 875,000 Number of paychecks printed Weekly reporting $ 375,000 Number of clients Annual tax reporting $ 260,000 Number of W-2s printed Your answer is correct. Expected Driver Volume 500 2.500,000 200 80,000 Calculate the cost rates for each activity cost pool (Round answers to 2 decimal places, eg. 15.25) Cost Pool Activity Rate $ Setting up new employees 183.50 new employee $ Processing weekly payroll 35/check $ 1875 /client Weekly reporting $ 325 W-2 Annual tax reporting Gia is preparing a proposal for a prospective client, Jason's Juice Bar. The client has 20 employees. What is the estimated cost of providing weekly payroll services to this client for the first year? (Round answers to 2 decimal places, eg. 15.25) Cost Pool Expected Annual Cost $ Setting up new employees 3670 Processing weekly payroll Weekly reporting Annual tax reporting Total $ 364 65
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