26) Morine 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:
Morine Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
11
Average salary per employee
$
36,720
Practical capacity per employee (in minutes)
102,000
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
18
24
46
Cost Object Data:
All Customers
Number of orders processed
17,310
Number of queries resolved
12,600
Number of credit reviews processed
450
–
On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in
number of employees” would be closest to:
A) 4.78 employees
B) (6.22) employees
C) 11.00 employees
D) 6.22 employees
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Total minutes available to meet demand
1,122,000
–
27) Demartini 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:
Demartini Corporation
Customer Support Department
Data Inputs
Resource Data:
Number of employees
21
Average salary per employee
$
38,700
Practical capacity per employee (in minutes)
90,000
Activity Data:
Receiving
Calls
Resolving
Issues
Settling
Disputes
Minutes per unit of the activity
14
24
42
Cost Object Data:
All Customers
Number of calls received
34,130
Number of issues resolved
22,680
Number of disputes settled
630
On the Capacity Analysis report in time-driven activity-based costing, the “impact on expenses
of matching capacity with demand” would be closest to:
A) ($387,000)
B) ($348,300)
C) ($309,600)
D) ($361,802)
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Total minutes available to meet demand
1,890,000
–
28) Hollifield 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:
Hollifield Corporation
Order Fulfillment Department
Data Inputs
Resource Data:
Number of employees
18
Average salary per employee
$
33,300
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
75
%
–
Activity Data:
Processing
Orders
Preparing
Deliveries
Handling
Returns
Minutes per unit of the activity
20
26
48
–
Cost Object Data:
All Customers
Number of orders processed
22,540
Number of deliveries prepared
15,180
Number of returns handled
1,540
–
On the Capacity Analysis report in time-driven activity-based costing, the “impact on expenses
of matching capacity with demand” would be closest to:
A) ($199,800)
B) ($233,100)
C) ($259,222)
D) ($266,400)
Weeks of employment per year (a)
Minutes available per week (40 hours × 60 minutes) (b)
Practical capacity percentage (c)
(c)
Number of employees
Total minutes available to meet demand
–
29) Elerson 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
Minutes per unit of the activity
10
22
36
–
Cost Object Data:
All Customers
Number of orders processed
24,280
Number of deliveries prepared
13,280
Number of returns handled
480
–
On the Capacity Analysis report in time-driven activity-based costing, the “total minutes used to
meet demand” would be closest to:
A) 756,000 minutes
B) 450,360 minutes
C) 552,240 minutes
D) 654,120 minutes
each activity (a)
of each activity (b)
demand (a) × (b)
292,160
30) Boiser 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:
Boiser Corporation
Order Fulfillment Department
Data Inputs
Resource Data:
Number of employees
17
Practical capacity per employee (in minutes)
102,000
–
Activity Data:
Processing
Orders
Preparing
Deliveries
Handling
Returns
Minutes per unit of the activity
10
28
50
–
All Customers
Number of orders processed
47,420
Number of deliveries prepared
31,880
Number of returns handled
860
–
On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in
minutes” would be closest to:
A) 324,160 minutes
B) 867,000 minutes
C) 1,409,840 minutes
D) 595,580 minutes
31) Tullio 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:
Tullio Corporation
Order Fulfillment Department
Data Inputs
Resource Data:
Number of employees
20
Average salary per employee
$
36,900
Practical capacity per employee (in minutes)
90,000
–
Activity Data:
Routing Calls
Resolving
Problems
Preparing
Change
Orders
Minutes per unit of the activity
12
22
40
All Customers
Number of calls routed
45,820
Number of problems resolved
36,370
Number of change orders prepared
2,060
On the Capacity Analysis report in time-driven activity-based costing, the “potential adjustment
in the number of employees” would be closest to:
A) (4.00) employees
B) 5.00 employees
C) 4.00 employees
D) (5.00) employees
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Total minutes available to meet demand
1,800,000
–
32) Cieslinski 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:
Cieslinski Corporation
Tech Support Department
Data Inputs
Resource Data:
Number of employees
12
Average salary per employee
$
43,200
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80
%
–
Activity Data:
Routing Calls
Resolving
Problems
Preparing
Change
Orders
Minutes per unit of the activity
20
26
46
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of calls routed
27
23
7
Number of problems resolved
16
9
9
Number of change orders prepared
0
1
0
–
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) $22.50 per minute
B) $0.45 per minute
C) $18.00 per minute
D) $0.36 per minute
33) Cieslinski 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:
Cieslinski Corporation
Tech Support Department
Data Inputs
Resource Data:
Number of employees
12
Average salary per employee
$
43,200
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80
%
–
Activity Data:
Routing Calls
Resolving
Problems
Preparing
Change
Orders
Minutes per unit of the activity
20
26
46
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of calls routed
27
23
7
Number of problems resolved
16
9
9
Number of change orders prepared
0
1
0
–
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer G would be closest to:
A) $430.20
B) $187.20
C) $0.00
D) $243.00
Weeks of employment per year (a)
Minutes available per week (40 hours × 60 minutes) (b)
Practical capacity percentage (c)
Practical capacity per employee (in minutes) (a) × (b) × (c)
–
34) Cieslinski 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:
Cieslinski Corporation
Tech Support Department
Data Inputs
Resource Data:
Number of employees
12
Average salary per employee
$
43,200
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80
%
–
Activity Data:
Routing Calls
Resolving
Problems
Preparing
Change
Orders
Minutes per unit of the activity
20
26
46
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of calls routed
27
23
7
Number of problems resolved
16
9
9
Number of change orders prepared
0
1
0
–
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer H would be closest to:
A) $105.30
B) $207.00
C) $333.00
D) $20.70
Weeks of employment per year (a)
Minutes available per week (40 hours × 60 minutes) (b)
Practical capacity percentage (c)
Practical capacity per employee (in minutes) (a) × (b) × (c)
–
35) Cieslinski 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:
Cieslinski Corporation
Tech Support Department
Data Inputs
Resource Data:
Number of employees
12
Average salary per employee
$
43,200
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80
%
–
Activity Data:
Routing Calls
Resolving
Problems
Preparing
Change
Orders
Minutes per unit of the activity
20
26
46
–
Cost Object Data:
Customer G
Customer H
Customer I
Number of calls routed
27
23
7
Number of problems resolved
16
9
9
Number of change orders prepared
0
1
0
–
On the Customer Cost Analysis report in time-driven activity-based costing, the total cost
assigned to Customer I would be closest to:
A) $168.30
B) $105.30
C) $63.00
D) $0.00
Weeks of employment per year (a)
Minutes available per week (40 hours × 60 minutes) (b)
Practical capacity percentage (c)
Practical capacity per employee (in minutes) (a) × (b) × (c)
–
36) 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 P would be closest to:
A) $168.00
B) $12.00
C) $128.00
D) $102.67
Preparing
Minutes per unit of the activity (a)
Cost per minute of the resource supplied (b)
Time-driven activity rate (a) × (b)
Customer P
Number of deliveries prepared (a)
Time-driven activity rate (b)
$
12.00
Preparing Deliveries costs assigned (a) × (b)
$