Question
Gauch Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that
Gauch Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study:
| Activity Data: | Receiving Calls | Resolving Issues | Settling Disputes |
|---|---|---|---|
| Minutes per unit of the activity | 18 | 30 | 48 |
| Cost Object Data: | Customer M | Customer N | Customer O |
|---|---|---|---|
| Number of calls received | 30 | 15 | 4 |
| Number of issues resolved | 19 | 12 | 8 |
| Number of disputes settled | 1 | 1 | 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 Receiving Calls cost assigned to Customer M would be closest to:
Multiple Choice
-
$216.00
-
$117.60
-
$7.20
-
$113.60
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
3rd edition
78025427, 978-0077736460, 007773646X, 978-0078025426
