Gauch 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: The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Receiving Calls cost assigned to Customer M would be closest to:
A) $216.00
B) $117.60
C) $7.20
D) $113.60

Question

Gauch 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:   The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Receiving Calls cost assigned to Customer M would be closest to:
A) $216.00 
B) $117.60 
C) $7.20 
D) $113.60

Quizplus · Accepted Answer

Step 2: Calculate the time-driven activity rate
 11eacbfc_c85d_829a_8ffe_fd9c7f57b92b_TB7552_00 Step 3: Assign costs to cost objects
 11eacbfc_c85d_829b_8ffe_4d0395e16414_TB7552_00

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