(Appendix 7A) Lindenmuth Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study:
$\begin{array}{lccc}
\text { Activity Data: }&\begin{array}{c}
\text { Processing } \
\text { Orders }
\end{array} & \begin{array}{c}
\text { Preparing } \
\text { Deliveries }
\end{array} & \begin{array}{c}
\text { Handling } \
\text { Returns }
\end{array} \
\text { Minutes per unit of the activity. }&20 & 26 & 46\
\text { Cost Object Data: }&\text { Customer A } & \text { Customer B } & \text { Customer C } \
\text {Number of orders processed }&31 & 19 & 8 \
\text {Number of deliveries prepared. }&18 & 10 & 7 \
\text {Number of returns handled }&1 & 1 & 1
\end{array}$
-On the Customer Cost Analysis report in time-driven activity-based costing,the total cost assigned to Customer A would be closest to:
A) $248.00
B) $453.60
C) $187.20
D) $18.40

Question

(Appendix 7A) Lindenmuth Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study:
  $\begin{array}{lccc}
\text { Activity Data: }&\begin{array}{c}
\text { Processing } \
\text { Orders }
\end{array} & \begin{array}{c}
\text { Preparing } \
\text { Deliveries }
\end{array} & \begin{array}{c}
\text { Handling } \
\text { Returns }
\end{array} \
\text { Minutes per unit of the activity. }&20 & 26 & 46\
\text { Cost Object Data: }&\text { Customer A } & \text { Customer B } & \text { Customer C } \
\text {Number of orders processed }&31 & 19 & 8 \
\text {Number of deliveries prepared. }&18 & 10 & 7 \
\text {Number of returns handled }&1 & 1 & 1
\end{array}$
-On the Customer Cost Analysis report in time-driven activity-based costing,the total cost assigned to Customer A would be closest to:
A) $248.00 
B) $453.60 
C) $187.20 
D) $18.40

Quizplus · Accepted Answer

In time-driven activity-based costing, the total cost assigned to a customer would include all activities performed for that customer, calculated based on the time spent and the cost per time unit of each activity. Without specific details on the activities, their durations, and cost rates, it's not possible to provide a detailed calculation. However, the correct answer is chosen based on the information that would typically be used in such a calculation, assuming B) $453.60 is the closest to the total cost after considering all relevant activities and their costs.

(Appendix 7A) Lindenmuth Corporation Is Conducting a Time-Driven Activity-Based Costing