Clutts 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: On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven activity rate for Resolving Issues would be closest to:
A) $0.36 per issue resolved
B) $1.64 per issue resolved
C) $7.92 per issue resolved
D) $22.00 per issue resolved

Question

Clutts 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:   On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven activity rate for Resolving Issues would be closest to:
A) $0.36 per issue resolved 
B) $1.64 per issue resolved 
C) $7.92 per issue resolved 
D) $22.00 per issue resolved

Quizplus · Accepted Answer

Step 1: Calculate the cost per minute of the resource supplied
 11eacbfc_c848_4ceb_8ffe_a5e177c0940b_TB7552_00 Step 2: Calculate the time-driven activity rate
 11eacbfc_c848_73fc_8ffe_e353d4102f95_TB7552_00

Clutts Corporation Is Conducting a Time-Driven Activity-Based Costing Study in Its