37) Choi 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:
Activity Data:
Processing
Orders
Preparing
Deliveries
Handling
Returns
Reviews
Minutes per unit of the activity
14
30
32
Cost Object Data:
Customer P
Customer Q
Customer R
Number of orders processed
32
24
3
Number of deliveries prepared
14
9
9
Number of returns handled
0
0
1
The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Preparing
Deliveries cost assigned to Customer Q would be closest to:
A) $108.00
B) $82.67
C) $128.00
D) $12.00
Minutes per unit of the activity (a)
Cost per minute of the resource supplied (b)
Time-driven activity rate (a) × (b)
Number of deliveries prepared (a)
Time-driven activity rate (b)
Preparing Deliveries costs assigned (a) × (b)
38) Choi 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:
Activity Data:
Processing
Orders
Preparing
Deliveries
Handling
Returns
Reviews
Minutes per unit of the activity
14
30
32
Cost Object Data:
Customer P
Customer Q
Customer R
Number of orders processed
32
24
3
Number of deliveries prepared
14
9
9
Number of returns handled
0
0
1
The cost per minute of the resource supplied is $0.40.
On the Customer Cost Analysis report in time-driven activity-based costing, the Preparing
Deliveries cost assigned to Customer R would be closest to:
A) $12.00
B) $108.00
C) $82.67
D) $128.00
Minutes per unit of the activity (a)
Cost per minute of the resource supplied (b)
Time-driven activity rate (a) × (b)
Number of deliveries prepared (a)
9
Time-driven activity rate (b)
Preparing Deliveries costs assigned (a) × (b)
39) Imbesi Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
14
22
44
–
Cost Object Data:
Customer P
Customer Q
Customer R
Number of orders processed
31
20
9
Number of queries resolved
15
11
8
Number of credit reviews processed
1
0
0
–
The cost per minute of the resource supplied is $0.36
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer P would be closest to:
A) $15.84
B) $290.88
C) $118.80
D) $156.24
40) Imbesi Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
14
22
44
–
Cost Object Data:
Customer P
Customer Q
Customer R
Number of orders processed
31
20
9
Number of queries resolved
15
11
8
Number of credit reviews processed
1
0
0
–
The cost per minute of the resource supplied is $0.36
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer Q would be closest to:
A) $100.80
B) $87.12
C) $0.00
D) $187.92
41) Imbesi Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
14
22
44
–
Cost Object Data:
Customer P
Customer Q
Customer R
Number of orders processed
31
20
9
Number of queries resolved
15
11
8
Number of credit reviews processed
1
0
0
–
The cost per minute of the resource supplied is $0.36
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer R would be closest to:
A) $0.00
B) $108.72
C) $45.36
D) $63.36
42) Code Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Code Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
18
Average salary per employee
$
37,740
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
85
%
–
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
16
28
38
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of orders processed
28
19
5
Number of queries resolved
18
11
8
Number of credit reviews processed
1
1
1
–
On the Customer Cost Analysis report in time-driven activity-based costing, the cost per minute
of the resource supplied would be closest to:
A) $0.37 per minute
B) $18.50 per minute
C) $15.73 per minute
D) $0.31 per minute
43) Code Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Code Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
18
Average salary per employee
$
37,740
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
85
%
–
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
16
28
38
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of orders processed
28
19
5
Number of queries resolved
18
11
8
Number of credit reviews processed
1
1
1
–
On the Customer Cost Analysis report in time-driven activity-based costing, the Resolving
Queries cost assigned to Customer G would be closest to:
A) $10.36
B) $127.77
C) $186.48
D) $108.20
44) Code Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Code Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
18
Average salary per employee
$
37,740
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
85
%
–
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
16
28
38
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of orders processed
28
19
5
Number of queries resolved
18
11
8
Number of credit reviews processed
1
1
1
–
On the Customer Cost Analysis report in time-driven activity-based costing, the Resolving
Queries cost assigned to Customer H would be closest to:
A) $113.96
B) $10.36
C) $127.77
D) $84.03
45) Code Corporation is conducting a time-driven activity-based costing study in its Customer
Service Department. The company has provided the following data to aid in that study:
Code Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
18
Average salary per employee
$
37,740
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
85
%
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
16
28
38
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of orders processed
28
19
5
Number of queries resolved
18
11
8
Number of credit reviews processed
1
1
1
–
On the Customer Cost Analysis report in time-driven activity-based costing, the Resolving
Queries cost assigned to Customer I would be closest to:
A) $73.67
B) $127.77
C) $10.36
D) $82.88
46) Fleisher Corporation is conducting a time-driven activity-based costing study in its Customer
Support Department. The company has provided the following data to aid in that study:
Fleisher Corporation
Customer Support Department
Data Inputs
Resource Data:
Number of employees
19
Average salary per employee
$
33,600
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80
%
–
Activity Data:
Receiving
Calls
Resolving
Issues
Settling
Disputes
Minutes per unit of the activity
18
22
48
–
Cost Object Data:
Customer S
Customer T
Customer U
Number of calls received
30
24
3
Number of issues resolved
17
11
8
Number of disputes settled
1
0
0
–
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer S would be closest to:
A) $189.00
B) $130.90
C) $16.80
D) $336.70
Weeks of employment per year (a)
50
Minutes available per week (40 hours × 60 minutes) (b)
2,400
Practical capacity percentage (c)
80
%
Practical capacity per employee (in minutes) (a) × (b) × (c)
96,000
–
47) Fleisher Corporation is conducting a time-driven activity-based costing study in its Customer
Support Department. The company has provided the following data to aid in that study:
Fleisher Corporation
Customer Support Department
Data Inputs
Resource Data:
Number of employees
19
Average salary per employee
$
33,600
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80
%
–
Activity Data:
Receiving
Calls
Resolving
Issues
Settling
Disputes
Minutes per unit of the activity
18
22
48
–
Cost Object Data:
Customer S
Customer T
Customer U
Number of calls received
30
24
3
Number of issues resolved
17
11
8
Number of disputes settled
1
0
0
–
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer T would be closest to:
A) $235.90
B) $84.70
C) $151.20
D) $0.00
Weeks of employment per year (a)
50
Minutes available per week (40 hours × 60 minutes) (b)
2,400
Practical capacity percentage (c)
80
%
Practical capacity per employee (in minutes) (a) × (b) × (c)
96,000
–
