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Practice Question 54 The rate per activity is calculated for technology support, and then multiplied by the actual number of minutes of support required
Practice Question 54 The rate per activity is calculated for technology support, and then multiplied by the actual number of minutes of support required by Tucker. 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? Some other answer $0.35 $1.87 $0.05 LINK TO TEXT
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