A. Indentify the broad activity categories and create cost pools by assigning the costs from Table 2 to the pools.

Table 2 Operating Expenses Accounting & legal $ 900 Advertising 150 Bank charges 35 Continuing education 450 Depreciation 11,800 Food expense 5,500 Ins. - Bldg/property 860 Ins. -Officerbond 120 Ins. - Gen. liability 2,190 Ins. - Workers comp 400 Interest expense 13,085 Payroll -wages* 109,500 Payroll-taxes* 9,475 Repairs & maintenance 5,950 Sanitation Service 2,435 Supplies - Cleaning 365 Supplies - Program/art 3,675 Supplies - Office 2,900 Telephone 1,060 Utilities 4,000 Water/sewer 1,100 TOTAL EXPENSES $ 175,950 *See detail in Table 1