Chevis Consulting provides weekly payroll processing for a number of small businesses. Gia Chevis, the company's owner,
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Chevis Consulting provides weekly payroll processing for a number of small businesses. Gia Chevis, 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.
Required
a. Calculate the cost rates for each activity cost pool.
b. 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?
c. How can Gia use the estimated cost information you have calculated to price the service it will provide to Jason's Juice Bar?
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