Maria is an accountant for Sheridan Towna tree preservation and removal companyThe company currently utilizes a traditional costing system, and Maria trying to determine whether or not it should implement Time-Driven Activity-Based Costing TDABC) Sheridan Town has several customer-centric activities including initial phone consultation appointment setting follow up and service calls Supporting these activities cost Sheridan Town $128,690 last year and Sheridan Town has 75,700 minutes within its capacity Maria has compiled the following data:

 

Key Transactions	Estimated Time per Call	Calls Handled this Year
Initial phone consultation	8 minutes	2,750 calls
Appointment Setting	5.5 minutes	1,520 calls
Follow-up	10 minutes	1,510 calls
Service calls	4.5 minutes	2,630 calls

 

Sheridan Town is wondering whether it is utilizing its capacity to its fullest potential and is hopeful that TDABC will help shed some light on the best way to proceed. 

 

(A)

What is the cost per transaction for each of the key activities? (If necessary round intermediate calculations and final answer to 2 decimal places)

 

Cost per transaction

Initial phone consultation: $___ per call

Appointment setting: $___ per call

Follow-up: $____per call

Service calls: $____ per call

Answer rating: 100% (QA)

To calculate the cost per transaction for each key activity using TimeDriven ActivityBased Costing T... View the full answer