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Author Question: Paula's Payroll Services provides weekly payroll processing for a number of small businesses. Paula ... (Read 37 times)

Tiffanyanne824

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on: Feb 5, 2023
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.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by Tiffanyanne824 on Feb 5, 2023

KeriJennin

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Reply #1 on: Feb 5, 2023
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Tiffanyanne824

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Reply 2 on: Feb 5, 2023
Excellent

deja

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Reply 3 on: Yesterday
:D TYSM

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