1. Choi Corporation is conducting a time-driven activity-based costing study in
ID: 2526859 • Letter: 1
Question
1. Choi Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study:
The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Preparing Deliveries cost assigned to Customer Q would be closest to:
$108.00
$82.67
$128.00
$12.00
2. Lamorte Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study:
On the Customer Cost Analysis report in time-driven activity-based costing, the Processing Orders cost assigned to Customer Z would be closest to:
Multiple Choice
$49.20
$8.20
$69.24
$150.33
Activity Data: Processing Orders Preparing Deliveries Handling Returns Minutes per unit of the activity 14 30 32Explanation / Answer
Answer to Question Number 1
Deliveries cost assigned to Customer Q =
Answer to Question number 2
the Processing Orders cost assigned to Customer Z would
Minutes per unit of the activity * Number of orders processed * Cost per minute = 20*6*0.41 = $49.2
Thanks
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.