Choi Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study: The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Preparing Deliveries cost assigned to Customer Q would be closest to:
A) $108.00
B) $82.67
C) $128.00
D) $12.00

Question

Choi Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study:   The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Preparing Deliveries cost assigned to Customer Q would be closest to:
A) $108.00 
B) $82.67 
C) $128.00 
D) $12.00

Quizplus · Accepted Answer

Step 2: Calculate the time-driven activity rate
 11eacbfc_c855_bb0d_8ffe_cb52de592944_TB7552_00 Step 3: Assign costs to cost objects
 11eacbfc_c855_e21e_8ffe_e5db755ddd35_TB7552_00

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