Below you will find information on Transport Trucking Ltd. With detailed Actions
ID: 2445783 • Letter: B
Question
Below you will find information on Transport Trucking Ltd. With detailed Actions: traceable costs and physical flow of driver units:
Actions
Traceable
Costs
Physical Flow of
Driver Units
Account inquiry (hours)
$ 200,000
5,000 hours
Account billing (lines)
140,000
2,000,000 lines
Account verification
(accounts)
75,000
20,000 accounts
Correspondence (letters)
25,000
2,000 letters
The above Actions are used by departments: Mechanics and Advisors as shown below:
DEPARTMENTS
Mechanics
Advisors
Account inquiry (hours)
1,000 hours
2,000 hours
Account billing (lines)
200,000 lines
100,000 lines
Account verification
(accounts)
5,000 accounts
4,000 accounts
Correspondence (letters)
500 letters
800 letters
1. What is the cost per driver unit for the account inquiry activity?
A) $40.00
B) $0.07
C) $3.75
D) $12.50
2. What is the cost per driver unit for the account billing activity?
A) $40.00
B) $0.07
C) $3.75
D) $12.50
3. How much of the account billing cost will be assigned to Department Advisors?
A) $14,000
B) $140,000
C) $7,000
D) None of the above
Actions
Traceable
Costs
Physical Flow of
Driver Units
Account inquiry (hours)
$ 200,000
5,000 hours
Account billing (lines)
140,000
2,000,000 lines
Account verification
(accounts)
75,000
20,000 accounts
Correspondence (letters)
25,000
2,000 letters
Explanation / Answer
Solution:
1.
2.
3.
Cost per driver unit Per unit = Total Cost / Account Inqury Hours Total Cost for Account Inqury 200,000 Account Inqury Hours 5,000 Cost per driver unit 40 Therefore, the answer to the above question is A) $ 40.00Related Questions
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