Question
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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