Offerman Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has
Fantastic news! We've Found the answer you've been seeking!
Question:
Offerman 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:
Offerman Corporation | |
Tech Support Department | |
Data Inputs | |
Resource Data: | |
---|---|
Number of employees | 5 |
Average salary per employee | $44,280 |
Weeks of employment per year | 50 |
Minutes available per week (40 hours × 60 minutes) | 2,400 |
Practical capacity percentage | 90% |
Activity Data: | Routing Calls | Resolving Problems | Preparing Change Orders |
---|---|---|---|
Minutes per unit of the activity | 16 | 28 | 34 |
Cost Object Data: | Customer P | Customer Q |
---|---|---|
Number of calls routed | 32 | 15 |
Number of problems resolved | 18 | 10 |
Number of change orders prepared | 0 | 0 |
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer Q would be closest to:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date: