Vaughn Consulting provides weekly payroll processing for a number of small businesses. Gia Vaughn, the companys owner, has been using an activity-based costing system for several years. She used the following information in preparing this years budget.

Activity Cost Pool		Total Cost					Cost Driver		Expected Driver Volume
Setting up new employees			$	79,000			Number of new employees		500
Processing weekly payroll			$	812,414			Number of paychecks printed		2,509,000
Weekly reporting			$	316,000			Number of clients		100
Annual tax reporting			$	185,700			Number of W-2s printed		61,900

1. Calculate the cost rates for each activity cost pool.

Setting Up New Employees:

Processing Weekly Payroll:

Weekly Reporting:

Annual Tax Reporting:

2. Gia is preparing a proposal for a prospective client, Jasons Juice Bar. The client has 15 employees. What is the estimated cost of providing weekly payroll services to this client for the first year?

Setting Up New Employees:

Processing Weekly Payroll:

Weekly Reporting:

Annual Tax Reporting:

Total: