Exercise $9-38($Static$)$ Activity$-$Based Costing, Cost Driver Rates, and the Cost Hierarchy: Not$-$for$-$Profit $($LO $9-4)$

Required:

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?

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 cost$-$driver rates for the refreshments, information, and audio guides and tour leaders.

Match each of the three activity$-$drivers to one of the levels of the cost hierarchy: