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E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its customers.
E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its customers. Information on those activities for the month of July follows: Cost Pools Order taking costs Technology support Picking and shipping costs Cost Drivers Number of orders Number of minutes Number of DVDs Estimated: Overhead Cost $20,592 $11,700 $39,624 Expected Use of Cost Drivers 187,200 orders 234,000 minutes 330,200 DVDs During July, the Tucker family placed 17 orders consisting of 21 DVDs. Tucker required 7 minutes of tech support. Customers pay $9.00 per month to rent unlimited DVDs. Using ABC, how much overhead is applied to the Tucker family account for technology support?
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