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Sun Studio in Irvine plans to initiate an activity-based costing system with two activities: Offering yoga sessions and Ofering Pilates sessions. It will Include all of the indirect.costs associated with each activity in the respective activity.cost pool, Sun Studio's owner provided the following information about its instructors' salaries and estimated time spent on each activity during a year: Annual Salary Offering yoga Sessions Offering Pilates Sessions Other Instructor A $75,000 50% 50% 0% Instructor B $95.000 15% 85% 0% Instructor C $100,000 10% 70% 20% In addition, the fitness center estimated $5,000 in annual depreciation for its equipment which is only used for offering yoga sessions, and $9.000 in annual depreciation for equipment which is only used for offering Pilates sessions. Based on all of the information above, what is the total indirect cost included in the activity cost pool for offering Pilates sessions? O $197,250 $179,000

Sun Studio in Irvine plans to initiate an activity-based costing system with two activities: Offering yoga sessions and Ofering Pilates sessions. It will Include all of the indirect.costs associated with each activity in the respective activity.cost pool, Sun Studio's owner provided the following information about its instructors' salaries and estimated time spent on each activity during a year: Annual Salary Offering yoga Sessions Offering Pilates Sessions Other Instructor A $75,000 50% 50% 0% Instructor B $95.000 15% 85% 0% Instructor C $100,000 10% 70% 20% In addition, the fitness center estimated $5,000 in annual depreciation for its equipment which is only used for offering yoga sessions, and $9.000 in annual depreciation for equipment which is only used for offering Pilates sessions. Based on all of the information above, what is the total indirect cost included in the activity cost pool for offering Pilates sessions? O $197,250 $179,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sun Studio in Irvine plans to initiate an activity-based costing system with two activities: Offering yoga sessions and Ottering Pilates sessions. It will include all of the indirect costs associated with each activity in the respective activity cost pool Sun Studio's owner provided the following information about its instructors' salaries and estimated time spent on each activity during a year: Annual Salary Offering yoga Sessions Offering Pilates Sessions Other Instructor A $75,000 50% 50% 0% Instructor B $95,000 15% 85% 0% Instructor C $100,000 10% 70% 20% In addition, the fitness center estimated $5,000 in annual depreciation for its equipment which is only used for offering yoga sessions, and $9.000 in annual depreciation for equipment which is only used for offering Pilates sessions. Based on all of the information above, what is the total indirect cost included in the activity cost pool for offering Pilates sessions? O $197,250 $179,000 $66 750 MacBook Pro
Transcribed Image Text:Sun Studio in Irvine plans to initiate an activity-based costing system with two activities: Offering yoga sessions and Ottering Pilates sessions. It will include all of the indirect costs associated with each activity in the respective activity cost pool Sun Studio's owner provided the following information about its instructors' salaries and estimated time spent on each activity during a year: Annual Salary Offering yoga Sessions Offering Pilates Sessions Other Instructor A $75,000 50% 50% 0% Instructor B $95,000 15% 85% 0% Instructor C $100,000 10% 70% 20% In addition, the fitness center estimated $5,000 in annual depreciation for its equipment which is only used for offering yoga sessions, and $9.000 in annual depreciation for equipment which is only used for offering Pilates sessions. Based on all of the information above, what is the total indirect cost included in the activity cost pool for offering Pilates sessions? O $197,250 $179,000 $66 750 MacBook Pro
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