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Miracle & Northmore, LLC is a data-driven political consulting firm in southeast Michigan. As part of their very successful firms pro-bono work, Miracle & Northmore
- Miracle & Northmore, LLC is a data-driven political consulting firm in southeast Michigan. As part of their very successful firms pro-bono work, Miracle & Northmore is helping a small campaign for township clerk determine the most effective way to deploy its limited resourced. Miracle & Northmore has decided to employ activity-based costing techniques to determine how the campaign is currently spending its funds in the North side and West side neighborhoods. After some research on what costs are driven by which activities, Miracle & Northmore has settled on the following activities and cost pool information:
North side | West side | ||||
Activity cost pool | Activity Measure | Activity cost pool | Activity Level | Activity Level | Activity Level |
Canvassing | Number of Houses | $ 120,000 | 5,000 | 3,000 | 2,000 |
Signage | Number of Signs | $ 50,000 | 4,000 | 2,500 | 1,500 |
Phone Bank | Number of Calls | $ 100,000 | 10,000 | 5,000 | 5,000 |
a. Calculate activity rates for each activity.
b. Determine the costs allocated to campaigning in the North side and West side, respectively.
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