Tech Squad is a regional call center that handles customer service calls from people who are experiencing technical issues with their personal devices. Management feels as though they never have an accurate picture of how well they are utilizing their available resources. Their controller has suggested that they consider switching to Time-Driven Activity-Based Costing (TDABC). The controller has identified the following information about their identified key activities:
Supporting these activities cost Tech Squad $266,800.00 last year, and they had 375,000 minutes within their capacity.
(If required, round calculations to two decimal places.)
a. Using TDABC, what is the rate for supplying an activity?
b. Using the TDABC rates, what is the total amount allocated to the key activities?
c. When you compare actual costs incurred to operate the activities to the allocated costs, what is the difference, and is it over- or underallocated?

Question

Tech Squad is a regional call center that handles customer service calls from people who are experiencing technical issues with their personal devices. Management feels as though they never have an accurate picture of how well they are utilizing their available resources. Their controller has suggested that they consider switching to Time-Driven Activity-Based Costing (TDABC). The controller has identified the following information about their identified key activities:
  Supporting these activities cost Tech Squad $266,800.00 last year, and they had 375,000 minutes within their capacity.
(If required, round calculations to two decimal places.)
a. Using TDABC, what is the rate for supplying an activity?
b. Using the TDABC rates, what is the total amount allocated to the key activities?
c. When you compare actual costs incurred to operate the activities to the allocated costs, what is the difference, and is it over- or underallocated?

Quizplus · Accepted Answer

The Answer of Tech Squad is a regional call center that handles customer service calls from people who are experiencing technical issues with their personal devices. Management feels as though they never have an accurate picture of how well they are utilizing their available resources. Their controller has suggested that they consider switching to Time-Driven Activity-Based Costing (TDABC). The controller has identified the following information about their identified key activities:
  Supporting these activities cost Tech Squad $266,800.00 last year, and they had 375,000 minutes within their capacity.
(If required, round calculations to two decimal places.)
a. Using TDABC, what is the rate for supplying an activity?
b. Using the TDABC rates, what is the total amount allocated to the key activities?
c. When you compare actual costs incurred to operate the activities to the allocated costs, what is the difference, and is it over- or underallocated?

Tech Squad Is a Regional Call Center That Handles Customer