Schackow 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: On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer P would be closest to:
A) $163.80
B) $387.66
C) $13.26
D) $210.60

Question

Schackow 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:    On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer P would be closest to:
A) $163.80 
B) $387.66 
C) $13.26 
D) $210.60

Quizplus · Accepted Answer

Step 1: Calculate the cost per minute of the resource supplied
 11eacbfc_c849_5e67_8ffe_4ffd3528766f_TB7552_00 Step 2: Calculate the time-driven activity rate
 11eacbfc_c849_5e68_8ffe_35fb77b2e17a_TB7552_00 Step 3: Assign costs to cost objects
 11eacbfc_c849_8579_8ffe_27398794075e_TB7552_00

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