Required:

1. Identify three cost pools and assign costs to them, considering the three cost objects of interest. Explain your choice for each cost pool identified and how the costs are assigned to each of the cost objects.

2. Determine an activity driver pool for each driver pool and explain your choice.

3. Using the activity drivers you identified to calculate the direct cost per unit of activity driver for each pool and explain what the cost per unit of activity driver for each pool means. Show all your workings.

Part A Case: Mia's Animal Shelter Mia's Animal Shelter performs three services: housing and finding homes for stray and unwanted animals, providing health care and neutering services for the animals, and pet training services. One facility is dedicated to housing animals waiting to be adopted. A second facility houses veterinarian services. A third facility houses the director, administration staff, and several dog trainers. This facility also has several large meeting rooms that are frequently used for classes conducted by animal trainers. The trainers work with all of the shelter's animals to ensure that they are relatively easy to manage. They also provide dog obedience classes for families who adopt animals Estimated annual costs for the animal shelter and its services are as follows 60,000 100,000 150,000 40,000 125,000 200,000 Director and administration staff salaries Housing service's employees' salaries Veterinarians and technicians' salaries Animal trainers' salaries Food and supplies Building-related costs On average, 75 animals per day are housed at the facility, or about 27,375 (75% 365) animal days in total. In addition, the trainers offer about 125 classes for about 30 weeks throughout the year. On average, 10 families attend each class. Last year the veterinarian clinic experienced 5,000 animal visits One of the administration staff, Eden, just graduated from an accounting program and would like to set up an ABC system for the shelter so that the director can better understand the cost for each of the shelter's services. He gathers the following information Square metres for each facility: Housing service Director and training Veterinarian clinic 5,000 square metres 3,000 square metres 2,000 square metres 50% $75,000 Percentage of trainer time used in classes Supplies used for veterinarian services Part A Case: Mia's Animal Shelter Mia's Animal Shelter performs three services: housing and finding homes for stray and unwanted animals, providing health care and neutering services for the animals, and pet training services. One facility is dedicated to housing animals waiting to be adopted. A second facility houses veterinarian services. A third facility houses the director, administration staff, and several dog trainers. This facility also has several large meeting rooms that are frequently used for classes conducted by animal trainers. The trainers work with all of the shelter's animals to ensure that they are relatively easy to manage. They also provide dog obedience classes for families who adopt animals Estimated annual costs for the animal shelter and its services are as follows 60,000 100,000 150,000 40,000 125,000 200,000 Director and administration staff salaries Housing service's employees' salaries Veterinarians and technicians' salaries Animal trainers' salaries Food and supplies Building-related costs On average, 75 animals per day are housed at the facility, or about 27,375 (75% 365) animal days in total. In addition, the trainers offer about 125 classes for about 30 weeks throughout the year. On average, 10 families attend each class. Last year the veterinarian clinic experienced 5,000 animal visits One of the administration staff, Eden, just graduated from an accounting program and would like to set up an ABC system for the shelter so that the director can better understand the cost for each of the shelter's services. He gathers the following information Square metres for each facility: Housing service Director and training Veterinarian clinic 5,000 square metres 3,000 square metres 2,000 square metres 50% $75,000 Percentage of trainer time used in classes Supplies used for veterinarian services