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
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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