Question
Sunrise Accounting provides basic tax services and rent-a-controller accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for
Sunrise Accounting provides basic tax services and rent-a-controller accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool.
| Activity | Total Activity Cost | Cost Driver | Expected Tax Services Usage | Expected Controller Services Usage | ||||||||
| Transportation costs | $ | 50,000 | Mileage | 5,000 | miles | 35,000 | miles | |||||
| Electronic processing | 75,000 | Processing hours | 20,000 | hours | 30,000 | hours | ||||||
| Office support | 20,000 | Administrative hours | 3,500 | hours | 1,500 | hours | ||||||
Compute the activity rate for each of the activity pools. (Round your answers to 2 decimal places.)
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The AICPA Audit Committee Toolkit Private Companies
Authors: AICPA
2nd Edition
1940235464, 978-1940235462
