Imbesi Corporation is conducting a time-driven activity-based costing study in i

Question

Imbesi Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that study: Activity Data: Processing Orders Resolving Queries Processing Credit Reviews Minutes per unit of the activity 14 22 44 Cost Object Data: Customer P Customer Q Customer R Number of orders processed 31 20 9 Number of queries resolved 15 11 8 Number of credit reviews processed 1 0 0 The cost per minute of the resource supplied is $0.36 On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer P would be closest to: $118.80 $15.84 $290.88 $156.24

Explanation / Answer

Cost assigned to Customer P is closest to $290.88

Cost assignment: Processing orders Resolving queries Processing Credit Reviews Minutes per unit 14 22 44 Cost per min 0.36 0.36 0.36 Total Cost 5.04 7.92 15.84 Cost assigned to Customer P: Processing orders Resolving queries Processing Credit Reviews Units 31 15 1 Cost per unit 5.04 7.92 15.84 Total Cost 156.24 118.8 15.84 290.88

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