Use the following tables to answer question #3:

3)

a. Identify the broad activity categories and create cost pools by assigning the costs from Table 2 to the pools. b. Identify the cost drivers that have a causal relationship to the activity cost pools created in part (a).

Table 2 Operating Expenses $ 900 150 35 450 11,800 5,500 860 Accounting &legal Advertising Bank charges Continuing education Depreciation Food expense Ins. - Bldg/property Ins. -Officerbond Ins. -Gen. liability Ins. - Workers comp Interest expense Payroll - wages* Payroll-taxes* Repairs & maintenance Sanitation Service Supplies - Cleaning Supplies - Program/art Supplies - Office Telephone Utilities Water/sewer TOTAL EXPENSES *See detailin Table 1 120 2,190 400 13,085 109,500 9,475 5,950 2,435 365 3,675 2,900 1,060 4,000 1.100 $ 175,950 Table 1 Payroll Detail Administrative Kitchen Infant care Toddler care Pre-K care Totals Wages $ 13,750 9,000 19,250 38,500 29,000 $109,500 Taxes $ 1,190 780 1,665 3,330 2.510 $ 9,475 Total Payroll $ 14,940 9,780 20,915 41,830 31.510 $118,975 Table 4 Hourly Childcare Rates Infant care Toddler care Pre-K care $ 2.00 1.75 1.75 Table 5 Square Footage ACDC School district Head Start TOTAL 3,600 1,750 2,650 8,000