Concord Consulting provides weekly payroll processing for a number of small businesses. Gia Concord, the companys owner, has been using an activity-based costing system for several years. She used the following information in preparing this years budget.

Activity Cost Pool		Total Cost					Cost Driver		Expected Driver Volume
Setting up new employees			$	89,750			Number of new employees		500
Processing weekly payroll			$	950,000			Number of paychecks printed		2,500,000
Weekly reporting			$	375,000			Number of clients		200
Annual tax reporting			$	300,000			Number of W-2s printed		80,000

(a)

Correct answer icon

Your answer is correct.

Calculate the cost rates for each activity cost pool. (Round answers to 2 decimal places, e.g. 15.25.)

Cost Pool		Activity Rate
Setting up new employees		$enter a dollar amount per new employee /new employee
Processing weekly payroll		$enter a dollar amount per check /check
Weekly reporting		$enter a dollar amount per client /client
Annual tax reporting		$enter a dollar amount per W-2 /W-2

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(b)

Partially correct answer icon

Your answer is partially correct.

Gia is preparing a proposal for a prospective client, Jasons 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, e.g. 15.25.)

Cost Pool		Expected Annual Cost
Setting up new employees		$enter a dollar amount
Processing weekly payroll		enter a dollar amount
Weekly reporting		enter a dollar amount
Annual tax reporting		enter a dollar amount
Total		$enter a total amount