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please solve this question. Snow has only recently joined Taxation Matters and he is concerned about the firm's pricing policy, which sets at fees 0!

please solve this question.

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Snow has only recently joined Taxation Matters and he is concerned about the firm's pricing policy, which sets at fees 0! $60 per return for wage and salary clients and $300 for small businesses. He decides to use activitybased ousting to estimate the costs of providing each of these services. At the end of the year, Snow reviewed the rm's total costs and activities, resulting in the following list: Activity Activity cost Activity driver Quantity of activity driver Interview salaried client 5 60,000 No. of salaried clients 8.000 Interview business client No. of business clients Obtain missing data No. of followup calls 12m Print return 90,000 No. of returns Total costs $1 245,000 In identifyingthe activities required for each type of return. Snow noted the following: Clients are interviewed only once per return. a All follow-up calls to obtain missing data relate to business returns; on average, each business tax return requires four follow-up calls. 0 Processing a wage and salary tart return requires 20 data entries, whereas a business return requires 12!] data entries. 0 On average, it takes 22.5 minutes to verify a wage and salary tax return, whereas it takes one and a half hours to verify a business return. 0 All errors relate to business returns; on average, there are 3 errors per business return. Required: 3} Use activity-based costing to estimate the cost of preparing: i A wage and salary tax return. {3 marks) ii A business tax return. (4 marks] I' ll u I -lilI- I .u

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