THREE PART QUESTION PLEASE ANSWER ALL

1A. Those activities that consume resources but do not contribute to the value of the product are referred as

Manufacturing overhead.

Period costs.

Non-value-added activities.

Contribution activities.

1B.

Marigold Consulting provides weekly payroll processing for a number of small businesses. Gia Marigold, the companys owner, has been using an activity-based costing system for several years. She used the following information in preparing this years budget.

Activity Cost Pool		Total Cost					Cost Driver		Expected Driver Volume
Setting up new employees			$	75,500			Number of new employees		500
Processing weekly payroll			$	776,536			Number of paychecks printed		2,509,000
Weekly reporting			$	320,000			Number of clients		200
Annual tax reporting			$	319,500			Number of W-2s printed		63,900

Calculate the cost rates for each activity cost pool. (Round answers to 2 decimal places, e.g. 15.25.)

Cost Pool		Activity Rate
Setting up new employees		$Enter a dollar amount per new employee /new employee
Processing weekly payroll		$Enter a dollar amount per check /check
Weekly reporting		$Enter a dollar amount per client /client
Annual tax reporting		$Enter a dollar amount per W-2 /W-2

Gia is preparing a proposal for a prospective client, Jasons Juice Bar. The client has 17 employees. What is the estimated cost of providing weekly payroll services to this client for the first year? (Round answers to 2 decimal places, e.g. 15.25.)

Cost Pool		Expected Annual Cost
Setting up new employees		$Enter a dollar amount
Processing weekly payroll		Enter a dollar amount
Weekly reporting		Enter a dollar amount
Annual tax reporting		Enter a dollar amount
Total		$Enter a total amount