Question

Required information

The City Museum (TCM) collects and displays historical artifacts from the local area. One of its services is dedicated tours. TCM offers dedicated tours to two groups: local students and donors. TCM has two coordinators for these tours—one for the student tours and one for the donor tours.

Data for the quarter on the two groups follow.

	Student Tours			Donor Tours			Total
Number of visitors		1,500			750			2,250
Number of tours		75			90			165

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

Refreshments, information, and audio guides	$	27,000
Tour leaders salaries and benefits		18,975
Coordinator salaries and benefits (@ $18,975 per coordinator)		37,950
Total	$	83,925

Required:

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

• Required A
• Required B
• Required C

TCM currently applies operational costs of the tours to the two types (student and donor) based on the number of visitors. What is the operational cost per visitor based on the costing system currently used? (Round your answer to 2 decimal places.)

	Overhead rate    per visitor

b. TCM is considering adopting an ABC system to evaluate the costs of the two types of tours. If they did so, they would use the following cost drivers: number of visitors for refreshments, information, and audio guides, and number of tours for tour leader salaries and benefits. Compute the cost driver rates for the refreshments, information, and audio guides and tour leaders.

TCM is considering adopting an ABC system to evaluate the costs of the two types of tours. If they did so, they would use the following cost drivers: number of visitors for refreshments, information, and audio guides, and number of tours for tour leader salaries and benefits. Compute the cost driver rates for the refreshments, information, and audio guides and tour leaders.

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	Cost driver rates Refreshments, etc. per visitor Tour guides per tour

Answer 1

y operational cost per visite Rased on current cost susten Particulars Student dow Direct labour Coordinator salaries and benefits 12.65 25.30 (18,9 As) (19925) se over Heads Refreshment information and audi quides 12 27000 x 1500xts 12 27000 2250) Tour leader salarie and benefits प3 (18.975 (18,975 +2250 - 2250 $ 33.08 $45.73 operational cost per visitar 16) Computation of cost Driver Rates to Number of Costdrivet Cost driver Rate Sl Tolei Particolar Cost Driver 2250 $27000 $12/ visita per visitor Refreshment, Information and audi suider 165 $115) Tour per tour $ 18,975 Tour leader salary Cost drivers will come only to overhead,