Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
g
2
2
b
2
M
2
V
2
f
2
c
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
danny2012 danny2012
wrote...
Go to Answer
Posts: 152
Rep: 0 0
A year ago
Paula's Payroll Services provides weekly payroll processing for a number of small businesses. Paula Peraz, the company's owner, has been using an activity-based costing system for several years. She used the following information in preparing this year's budget.

​Expected
Activity Cost PoolTotal CostCost DriverDriver Volume
Setting up new employees$  78,000​Number of new employees600
Processing weekly payroll780,000​Number of paychecks printed2,600,000
Weekly reporting350,000​Number of clients125
Annual tax reporting245,000​Number of W-2s printed70,000
Required:
a.Calculate the cost rates for each activity cost pool.
b.Paula is preparing a proposal for a prospective client, Barney's Bistro. The client has
25 employees. What is the estimated cost of providing weekly payroll services to this client for the first year?
c.How can Paula use the estimated cost information you have calculated to price the
service
it will provide to Barney's Bistro.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 45 times
1 Reply
Replies
Answer verified by a subject expert
livewelldreambilivewelldreambi
wrote...
#1
Posts: 166
Rep: 1 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 3710 words.
1

Related Topics

danny2012 Author
wrote...

A year ago
This site is awesome
Liarec
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
annakc
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  403 People Browsing
 132 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 223
  
 125
  
 300
Your Opinion
Who's your favorite biologist?
Votes: 608
Previous poll results: Which is the best fuel for late night cramming?