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 N would be closest to:
A) $117.60
B) $108.00
C) $77.60
D) $7.20

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 N would be closest to:
A) $117.60 
B) $108.00 
C) $77.60 
D) $7.20

Quizplus · Accepted Answer

Step 2: Calculate the time-driven activity rate
 11eacbfc_c85d_d0be_8ffe_612bc38eb656_TB7552_00 Step 3: Assign costs to cost objects
 11eacbfc_c85d_d0bf_8ffe_bfd0c9f3b3c4_TB7552_00

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