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Marigold Consulting provides weekly payroll processing for a number of small businesses. Gia Marigold, the companys owner, has been using an activity-based costing system for

Marigold Consulting provides weekly payroll processing for a number of small businesses. Gia Marigold, 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 $ 75,500 Number of new employees 500
Processing weekly payroll $ 776,536 Number of paychecks printed 2,509,000
Weekly reporting $ 320,000 Number of clients 200
Annual tax reporting $ 319,500 Number of W-2s printed 63,900

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

Gia is preparing a proposal for a prospective client, Jasons Juice Bar. The client has 17 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

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