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The City Museum (TCM) collects and displays historical artifacts from the local area. One of its services is dedicated tours. TCM offers dedicated tours to two groups: local students and donors. TCM has two coordinators for these toursone for the student tours and one for the donor tours. Data for the quarter on the two groups follow.

	Student Tours			Donor Tours			Total
Number of visitors		1,500			750			2,250
Number of tours		75			90			165

The operational costs associated with the tours have been collected and are presented in the following table.

Refreshments, information, and audio guides	$	27,000
Tour leaders salaries and benefits		26,400
Coordinator salaries and benefits (@ $26,400 per coordinator)		52,800
Total	$	106,200

Required:

a. TCM currently applies operational costs of the tours to the two types (student and donor) based on the number of visitors. What is the operational cost per visitor based on the costing system currently used? b. TCM is considering adopting an ABC system to evaluate the costs of the two types of tours. If they did so, they would use the following cost drivers: number of visitors for refreshments, information, and audio guides, and number of tours for tour leader salaries and benefits. Compute the cost driver rates for the refreshments, information, and audio guides and tour leaders. c. Match each of the three activity-drivers to one of the levels of the cost hierarchy.

Required A

TCM currently applies operational costs of the tours to the two types (student and donor) based on the number of visitors. What is the operational cost per visitor based on the costing system currently used? (Round your answer to 2 decimal places.)

overhead rate______ per visitor

Required B

TCM is considering adopting an ABC system to evaluate the costs of the two types of tours. If they did so, they would use the following cost drivers: number of visitors for refreshments, information, and audio guides, and number of tours for tour leader salaries and benefits. Compute the cost driver rates for the refreshments, information, and audio guides and tour leaders.

Refreshments, etc. ______ per visitor

Tour guides _______ per tour

Required C

1 Visitors

2 Tours

3 Coordinators

the options are Batch-related , Facility- related, Product-relate and Volume- related