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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

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