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Karen is an accountant for Crane Town, Inc., a tree preservation and removal company. The company currently utilizes a traditional costing system, and Karen is
Karen is an accountant for Crane Town, Inc., a tree preservation and removal company. The company currently utilizes a traditional costing system, and Karen is trying to determine whether or not it should implement Time-Driven Activity-Based Costing (TDABC). Crane Town has several customer-centric activities including: initial phone consultation, appointment setting, follow-up, and service calls. Supporting these activities cost Crane Town $129,710 last year, and Crane Town has 76,300 minutes within its capacity. Karen has compiled the following data: Crane Town is wondering whether it is utilizing its capacity to its fullest potential and is hopeful that TDABC will help shed some light on the best way to proceed. What is the cost per transaction for each of the key activities? (If necessary, round intermediate calculations and final answer to 2 decimal places, e.g. 12.25.)
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