Question

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Sunrise has identified three activity Tools, Controlver А SDF G Н. J к L return slock > ? S M. sht ift CG Surise accounting provides basic +«* services and rent a contraierii accounting services. the related costs per pool, the cost driver for eaen pool 1 Caen pool and the expected use for Icost Tota nctive CORE Expected Expeded tax serie ware uson GOOD miles/44,800 nices Activity Trasportalen COSTS Electronic Processing $81,920 mileage 117,700 processing hrs Adninistrare hours 21,400 hours 3 2.10 Dinos 13,990 hrs/1,710 hrs office Usort 42,700 compute the activity rate for each of the activity POOLS Iper mile per processing Processing hour office Iper adminstraty nour Transportation COS Clechonte support

Answer 1

Activity Cost driver Transportation Costs miles Electronic Processing processing hours Office Support administrative hours Total Activity Cost $81,920 117,700 62,700 Total expected use Activity rate 6,400 + 44,800 = 51,200 miles 81,920 / 51,200 = $1.6 per mile 21,400 + 32,100 = 53,500 processing hours 117,700 / 53,500 = $2.2 per processing hour 3,990 + 1,710 = 5,700 administrative hours 62,700 / 5,700 = $11 per administrative hour