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 Resolving Problems would be closest to:
A) $11.76 per problem resolved
B) $28.00 per problem resolved
C) $0.42 per problem resolved
D) $1.50 per problem resolved

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 Resolving Problems would be closest to:
A) $11.76 per problem resolved 
B) $28.00 per problem resolved 
C) $0.42 per problem resolved 
D) $1.50 per problem resolved

Quizplus · Accepted Answer

Step 2: Calculate the time-driven activity rate
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Pierceall Corporation Is Conducting a Time-Driven Activity-Based Costing Study in Its