The Philip County Historical Society (PCHS) collects and displays historical artifacts from the local area. One of its services is dedicated tours. PCHS offers dedicated tours to two groups: the general public (generally tourists and local residents) and donors. PCHS has two part-time coordinators for these tours—one for the public tours and one for the donor tours.

Data for the quarter on the two groups follow:

The operational costs associated with the tours have been collected and are presented in the following table: 

Required

a. PCHS currently applies operational costs of the tours to the two types (public and donor) based on the number of visitors. What is the operational cost per visitor based on the costing system currently used?

b. The financial advisor to PCHS suggests adopting an ABC system to evaluate the costs of the two types of tours. If PCHS did so, it would use the following cost drivers: number of visitors for refreshments, audio guides, and other costs; number of tours for tour guide salaries and benefits; and number of coordinators for coordinator salaries and benefits. Compute the costdriver rates for the refreshments, information, and audio guides and tour leaders.

c. Match each of the three activity drivers to one of the levels of the cost hierarchy: 

Transcribed Image Text:

Number of visitors Number of tours. Public Tours 500 25 Donor Tours 250 30 Total 750 55