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, e.g. 15.25.)Cost PoolExpected Annual Cost3650Setting up new employeesProcessing weekly payroll1870Weekly reportingAnnual tax reporting5520TotaleTextbook and Media%24 Coronado Consulting provides weekly payroll processing for a number of small businesses. Gia Coronado, the company's owner, hasbeen using an activity-based costing system for several years. She used the following information in preparing this year's budget.Activity Cost PoolTotal CostCost DriverExpected Driver VolumeSetting up new employees$91,250Number of new employees500Processing weekly payroll$ 950,000Number of paychecks printed2,500,000Weekly reporting$ 374,000Number of clients200Annual tax reporting$ 280,000Number of W-2s printed80,000(a)Your answer is correct.Calculate the cost rates for each activity cost pool. (Round answers to 2 decimal places, e.g. 15.25.)Cost PoolActivity Rate182.5/new employeeSetting up new employees$.38/checkProcessing weekly payroll1870/clientWeekly reporting$3.5 | /W-2Annual tax reporting%24%24%24%24

Activity-based costing: Activity-based costing is commonly known as ABC. It is a costing method that…

Gia is preparing a proposal for a prospective client, Jason's Juice Bar. The client ha What is the estimated cost of providing weekly payroll services to this client fort (Round answers to 2 decimal places, e.g. 15.25.) Cost Pool Expected Annual Cost 3650 Setting up new employees Processing weekly payroll 1870 Weekly reporting %24

Gia is preparing a proposal for a prospective client, Jason's Juice Bar. The client ha What is the estimated cost of providing weekly payroll services to this client fort (Round answers to 2 decimal places, e.g. 15.25.) Cost Pool Expected Annual Cost 3650 Setting up new employees Processing weekly payroll 1870 Weekly reporting %24

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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