Mongiello 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) $9.12 per issue resolved
B) $0.38 per issue resolved
C) $24.00 per issue resolved
D) $1.58 per issue resolved

Question

Mongiello 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) $9.12 per issue resolved 
B) $0.38 per issue resolved 
C) $24.00 per issue resolved 
D) $1.58 per issue resolved

Quizplus · Accepted Answer

11eacbfc_c84b_8160_8ffe_25ef0ccaa9b4_TB7552_00 Step 1: Calculate the cost per minute of the resource supplied
 11eacbfc_c84b_a871_8ffe_69610e8e66a5_TB7552_00 Step 2: Calculate the time-driven activity rate
 11eacbfc_c84b_a872_8ffe_736d0e45cbb1_TB7552_00

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