Pierceall Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study: The cost per minute of the resource supplied is $0.42.
On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven activity rate for Preparing Change Orders would be closest to:
A) $0.42 per change order prepared
B) $1.11 per change order prepared
C) $15.96 per change order prepared
D) $38.00 per change order prepared

Question

Pierceall Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study:   The cost per minute of the resource supplied is $0.42.
On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven activity rate for Preparing Change Orders would be closest to:
A) $0.42 per change order prepared 
B) $1.11 per change order prepared 
C) $15.96 per change order prepared 
D) $38.00 per change order prepared

Quizplus · Accepted Answer

Step 2: Calculate the time-driven activity rate
 11eacbfc_c864_39ae_8ffe_c39a16c551f3_TB7552_00

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