Oltz 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 total cost assigned to Customer U would be closest to:
A) $0.00
B) $174.24
C) $79.20
D) $95.04

Question

Oltz 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 total cost assigned to Customer U would be closest to:
A) $0.00 
B) $174.24 
C) $79.20 
D) $95.04

Quizplus · Accepted Answer

Step 1: Calculate the cost per minute of the resource supplied
 11eacbfc_c849_d39d_8ffe_2b59e5ea427a_TB7552_00 Step 2: Calculate the time-driven activity rate
 11eacbfc_c849_faae_8ffe_9ba2e20897bf_TB7552_00 Step 3: Assign costs to cost objects
 11eacbfc_c849_faaf_8ffe_9f6a0aa9ccf2_TB7552_00

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