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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

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:

Activity Data: Processing Orders Preparing Deliveries Handling Returns
Minutes per unit of the activity 14 30 32

Cost Object Data: Customer P Customer Q Customer R
Number of orders processed 32 24 3
Number of deliveries prepared 14 9 9
Number of returns handled 0 0 1

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:

Lamorte Corporation
Order Fulfillment Department
Data Inputs
Resource Data:
Number of employees 20
Average salary per employee $ 44,280
Weeks of employment per year 50
Minutes available per week (40 hours 60 minutes) 2,400
Practical capacity percentage 90 %

Activity Data: Processing Orders Preparing Deliveries Handling Returns
Minutes per unit of the activity 20 22 36

Cost Object Data: Customer X Customer Y Customer Z
Number of orders processed 30 19 6

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

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