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Sheffield Consulting provides weekly payroll processing for a number of small businesses. Gia Sheffield, the company's owner, has been using an activity-based costing system for

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Sheffield Consulting provides weekly payroll processing for a number of small businesses. Gia Sheffield, the company's owner, has been using an activity-based costing system for several years. She used the following information in preparing this year's budget. Total Cost Expected Driver Volume $ 88,750 Activity Cost Pool Setting up new employees Processing weekly payroll Weekly reporting 500 Cost Driver Number of new employees Number of paychecks printed Number of clients $ 950,000 2,500.000 $ 371.000 200 Annual tax reporting $ 280,000 Number of W-2s printed 80.000 Your Answer Correct Answer Your answer is correct. Calculate the cost rates for each activity cost pool. (Round answers to 2 decimal places, eg. 15.25) Cost Pool Activity Rate Setting up new employees 177.5 new employee $ Processing weekly payroll 038 /check S 1855 client Weekly reporting $ 35 W-2 Annual tax reporting Your answer is partially correct. Gia is preparing a proposal for a prospective client, Jason's Juice Bar, The client has 20 employees. What is the estimated cost of providing weekly payroll services to this client for the first year? (Round answers to 2 decimal places, eg. 15.25) Cost Pool Expected Annual Cost Setting up new employees $ 3550 Processing weekly payroll 38000 1855 Weekly reporting 11200 Annual tax reporting s 54605 Total Bramble Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Activity Overheads $ 148,200 Cost Driver Quantity 1.900 Machine setup Inspection Cost Driver # of setups # of quality tests #of purchase orders 129.200 380 232.400 Materials receiving 2.800 The budgeted data for smartphone case production are as follows. Direct materials $ 2.30 per unit $0.57 per unit Direct labor Number of setups 190 Number of quality tests 390 Number of purchase orders 70 Production 278.600 units (a) Your answer is correct. Calculate the activity rate for each cost pool. $ 78.00/setup Machine setup $ 340.00 test Inspection $ 83.00 PO Materials receiving (b) * Your answer is incorrect. Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, eg. 15.25.) 3.4201 Activity-based unit cost

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