Question
Ploof Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that
Ploof Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that study:
| Ploof Corporation | ||
| Customer Service Department | ||
| Data Inputs | ||
| Resource Data: | ||
| Number of employees | 20 | |
| Average salary per employee | $ | 34,200 |
| Practical capacity per employee (in minutes) | 90,000 | |
| Activity Data: | Processing Orders | Resolving Queries | Processing Credit Reviews |
| Minutes per unit of the activity | 16 | 26 | 36 |
| Cost Object Data: | All Customers |
| Number of orders processed | 48,970 |
| Number of queries resolved | 29,650 |
| Number of credit reviews processed | 1,620 |
On the Capacity Analysis report in time-driven activity-based costing, the impact on expenses of matching capacity with demand would be closest to:
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch
6th Edition
0132366355, 978-0132366359
