Accounting Chapter 7a Chapter 7a_version1 In a Capacity Analysis report in time-based activity-based costing, the impact on expenses of matching capacity with demand is computed by multiplying the potential adjustment

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Student name:__________

1) Gessford 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:

Gessford Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 21

Average salary per employee $ 43,860

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing

Deliveries Handling Returns

Minutes per unit of the activity 18 26 34

Cost Object Data: Customer M Customer N Customer O

Number of orders processed 25 15 4

Number of deliveries prepared 20 12 9

Number of returns handled 1 0 0

Required:

Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the

total Order Fulfillment Department cost assigned to each customer.

2) Villella 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:

Villella Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 9

Average salary per employee $ 45,900

Weeks of employment per year 50

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Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Routing Calls Resolving

Problems Preparing Change Orders

Minutes per unit of the activity 20 26 36

Cost Object Data: Customer A Customer B

Number of calls routed 28 22

Number of problems resolved 14 11

Number of change orders prepared 0 1

Required:

Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the

total Tech Support Department cost assigned to each customer.

3) Garrell 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:

Activity cost pool: Time-driven activity rate (cost

per unit of activity)

Receiving Calls $ 5.46

Resolving Issues $ 8.58

Settling Disputes $ 13.26

Cost Object Data: Customer P Customer Q

Number of calls received 31 21

Number of issues resolved 17 10

Number of disputes settled 1 0

Required:

Using time-driven activity-based costing, determine the total Customer Support Department cost

assigned to each customer.

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4) Jarvis 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:

Jarvis Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 14

Average salary per employee $ 39,780

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing

Deliveries Handling Returns

Minutes per unit of the activity 14 30 32

Cost Object Data: Customer X

Number of orders processed 35

Number of deliveries prepared 16

Number of returns handled 1

Required:

Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the

total Order Fulfillment Department cost assigned to Customer X.

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5) Gumbel 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:

Gumbel Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 7

Average salary per employee $ 43,860

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Receiving Calls Resolving

Issues Settling Disputes

Minutes per unit of the activity 14 22 50

Cost Object Data: Customer P Customer Q Customer R

Number of calls received 32 21 4

Number of issues resolved 15 11 7

Number of disputes settled 1 0 1

Required:

Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the

total Customer Support Department cost assigned to each customer.

6) Raycroft 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 cost pool: Time-driven activity rate (cost per

unit of activity)

Processing Orders $ 7.00

Resolving Queries $ 7.70

Processing Credit Reviews $ 14.00

Cost Object Data: Customer J Customer K Customer L

Number of orders processed 31 17 4

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Number of queries resolved 20 10 7

Number of credit reviews processed 1 0 1

Required:

Using time-driven activity-based costing, determine the total Customer Service Department

cost assigned to each customer.

7) Otsuka 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:

Activity cost pool: Time-driven activity rate (cost per unit

of activity)

Routing Calls $ 4.20

Resolving Problems $ 11.76

Preparing Change Orders $ 13.44

Cost Object Data: Customer X Customer Y Customer Z

Number of calls routed 28 20 5

Number of problems resolved 15 8 8

Number of change orders prepared 0 1 0

Required:

Using time-driven activity-based costing, determine the total Tech Support Department cost

assigned to each customer.

8) Wilmot 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:

Wilmot Corporation

Customer Service Department

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Data Inputs

Resource Data:

Number of employees 18

Average salary per employee $ 41,280

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 80%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 20 24 38

Cost Object Data: Customer G Customer H

Number of orders processed 30 17

Number of queries resolved 17 10

Number of credit reviews processed 1 1

Required:

Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the

total Customer Service Department cost assigned to each customer.

9) Salem 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 cost pool: Time-driven activity rate (cost per unit of

activity)

Processing Orders $ 4.92

Preparing Deliveries $ 10.66

Handling Returns $ 16.40

Cost Object Data: Customer J Customer K

Number of orders processed 27 22

Number of deliveries prepared 18 8

Number of returns handled 0 1

Required:

Using time-driven activity-based costing, determine the total Order Fulfillment Department cost

assigned to each customer.

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10) Penders 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:

Penders Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $ 39,600

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 20 22 50

Cost Object Data: Customer J

Number of calls received 34

Number of issues resolved 15

Number of disputes settled 1

Required:

Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the

total Customer Support Department cost assigned to Customer J.

11) Bartucci 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:

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Bartucci Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 14

Average salary per employee $ 44,880

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 16 22 44

Cost Object Data: Customer A Customer B All Customers

Number of calls received 32 17 40,070

Number of issues resolved 20 8 25,990

Number of disputes settled 1 0 1,310

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Customer Support Department cost assigned to each customer.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer

Support Department that determines the impact on expenses of matching capacity with demand.

12) Genereux 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:

Genereux Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 17

Average salary per employee $ 37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 18 22 38

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Cost Object Data: Customer M Customer N Customer O All Customers

Number of orders processed 31 19 9 35,230

Number of queries resolved 17 12 8 26,390

Number of credit reviews processed 1 1 1 2,030

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Customer Service Department cost assigned to each customer.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer

Service Department that determines the impact on expenses of matching capacity with demand.

13) Rohn 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:

Rohn Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 10

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: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 10 22 42

Cost Object Data: Customer D Customer E Customer F All Customers

Number of calls routed 29 20 3 21,490

Number of problems resolved 16 12 7 12,150

Number of change orders prepared 1 0 0 550

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Tech Support Department cost assigned to each customer.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Tech Support

Department that determines the impact on expenses of matching capacity with demand.

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14) Weisgarber 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:

Weisgarber Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 22

Average salary per employee $ 37,410

Weeks of employment per year 70

Minutes available per week (50 hours × 60 minutes) 3,000

Practical capacity percentage 70%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 19 25 51

Cost Object Data: Customer G All Customers

Number of orders processed 34 49,360

Number of queries resolved 18 23,660

Number of credit reviews processed 2 2,280

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Customer Service Department cost assigned to Customer G.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer

Service Department that determines the impact on expenses of matching capacity with demand.

15) Brester 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:

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Brester Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 4

Average salary per employee $ 42,840

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 12 22 40

Cost Object Data: Customer M Customer N All Customers

Number of orders processed 28 21 12,840

Number of deliveries prepared 16 10 8,970

Number of returns handled 0 1 460

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Order Fulfillment Department cost assigned to each customer.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Order

Fulfillment Department that determines the impact on expenses of matching capacity with

demand.

16) Taft 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:

Taft Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 24

Average salary per employee $ 39,780

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

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Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 20 26 34

Cost Object Data: Customer J All Customers

Number of calls routed 26 43,090

Number of problems resolved 19 36,360

Number of change orders prepared 1 1,670

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Tech Support Department cost assigned to Customer J.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Tech Support

Department that determines the impact on expenses of matching capacity with demand.

17) Sardella 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:

Sardella Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 11

Average salary per employee $ 37,440

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 80%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 12 24 38

Cost Object Data: All Customers

Number of orders processed 34,520

Number of deliveries prepared 19,920

Number of returns handled 650

Required:

Prepare a time-driven activity-based costing Capacity Analysis report for the Order Fulfillment

Department that determines the impact on expenses of matching capacity with demand.

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18) Monfort 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:

Monfort Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 15

Average salary per employee $ 37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 12 22 34

Cost Object Data: All Customers

Number of calls received 34,490

Number of issues resolved 20,350

Number of disputes settled 550

Required:

Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Support

Department that determines the impact on expenses of matching capacity with demand.

19) Riedell 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:

Riedell Corporation

Tech Support Department

Data Inputs

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Resource Data:

Number of employees 19

Average salary per employee $ 36,800

Weeks of employment per year 70

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 45%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 20 30 46

Cost Object Data: All Customers

Number of calls routed 19,310

Number of problems resolved 12,700

Number of change orders prepared 510

Required:

Prepare a time-driven activity-based costing Capacity Analysis report for the Tech Support

Department that determines the impact on expenses of matching capacity with demand.

(Negative amounts should be indicated by a minus sign. Round your intermediate

calculations to the nearest whole number.)

20) Weisgarber 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:

Weisgarber Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 19

Average salary per employee $39,960

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 16 22 48

Cost Object Data: Customer G All Customers

Number of orders processed 31 49,020

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Number of queries resolved 15 23,320

Number of credit reviews processed 1 2,110

Required:

a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines

the total Customer Service Department cost assigned to Customer G.

b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer

Service Department that determines the impact on expenses of matching capacity with demand.

21) Riedell 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:

Riedell Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $39,600

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 24 40

Cost Object Data: All Customers

Number of calls routed 20,010

Number of problems resolved 12,840

Number of change orders prepared 580

Required:

Prepare a time-driven activity-based costing Capacity Analysis report for the Tech Support

Department that determines the impact on expenses of matching capacity with demand.

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22) Mosburg 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:

Mosburg Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $36,900

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 26 40

Cost Object Data: All Customers

Number of orders processed 33,790

Number of queries resolved 23,650

Number of credit reviews processed 1,500

Required:

Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Service

Department that determines the impact on expenses of matching capacity with demand.

23) Time-based activity-based costing does NOT use which of the following types of data

inputs?

A) Resource data.

B) Direct cost data.

C) Activity data.

D) Costs object data.

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24) Clutts 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:

Clutts Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $ 36,720

Practical capacity per employee (in minutes) 102,000

Activity Data: Receiving Calls Resolving Issues

Minutes per unit of the activity 16 22

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Resolving Issues would be closest to:

A) $0.36 per issue resolved

B) $1.64 per issue resolved

C) $7.92 per issue resolved

D) $22.00 per issue resolved

25) Pacius 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:

Pacius Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 11

Average salary per employee $39,780

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 Issues Processing

Credit Reviews

Minutes per unit of the activity 12 24 36

Cost Object Data: Customer S

Number of orders processed 35

Number of queries resolved 18

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Number of credit reviews processed 1

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer S would be closest to:

A) $346.32

B) $14.04

C) $168.48

D) $163.80

26) Schackow 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:

Schackow Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 27

Average salary per employee $35,100

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 18 28 34

Cost Object Data: Customer P

Number of orders processed 30

Number of queries resolved 15

Number of credit reviews processed 1

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer P would be closest to:

A) $163.80

B) $387.66

C) $13.26

D) $210.60

27) Oltz 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:

Oltz Corporation

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Customer Support Department

Data Inputs

Resource Data:

Number of employees 26

Average salary per employee $39,600

Practical capacity per employee (in minutes) 90,000

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 20 24 42

Cost Object Data: Customer S Customer T Customer U

Number of calls received 26 17 9

Number of issues resolved 14 8 9

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 U would be closest to:

A) $0.00

B) $174.24

C) $79.20

D) $95.04

28) Schweiss 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:

Schweiss Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 15

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

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) $17.50 per minute

B) $0.32 per minute

C) $0.35 per minute

D) $15.75 per minute

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29) 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:

A) $0.00

B) $98.40

C) $213.20

D) $114.80

30) Chuong 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:

Chuong Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 11

Average salary per employee $36,000

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

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Minutes per unit of the activity 10 22 44

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Handling Returns would be closest to:

A) $44.00 per return handled

B) $17.60 per return handled

C) $0.91 per return handled

D) $0.40 per return handled

31) Mongiello 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:

Mongiello Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 7

Average salary per employee $36,480

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 24 36

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Resolving Issues would be closest to:

A) $9.12 per issue resolved

B) $0.38 per issue resolved

C) $24.00 per issue resolved

D) $1.58 per issue resolved

32) Stapel 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:

Stapel Corporation

Customer Service Department

Data Inputs

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Resource Data:

Number of employees 10

Average salary per employee $43,200

Practical capacity per employee (in minutes) 108,000

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) $0.40 per minute

B) $20.00 per minute

C) $0.36 per minute

D) $18.00 per minute

33) Doell 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:

Doell Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 19

Average salary per employee $36,480

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 18 22 42

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Routing Calls would be closest to:

A) $6.84 per call routed

B) $0.38 per call routed

C) $18.00 per call routed

D) $3.11 per call routed

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34) Mccluer 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:

Mccluer Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 11

Average salary per employee $43,860

Practical capacity per employee (in minutes) 102,000

Activity Data: Routing Calls

Minutes per unit of the activity 10

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Routing Calls would be closest to:

A) $10.00 per call routed

B) $0.43 per call routed

C) $5.30 per call routed

D) $4.30 per call routed

35) Bernosky 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:

Bernosky Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 12

Average salary per employee $38,400

Practical capacity per employee (in minutes) 96,000

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 20 24 34

Cost Object Data: Customer P Customer Q

Number of calls routed 30 18

Number of problems resolved 17 8

Number of change orders prepared 1 1

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer Q would be closest to:

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A) $13.60

B) $76.80

C) $234.40

D) $144.00

36) Lopresto 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:

Lopresto Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 14

Average salary per employee $38,760

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 14 28 36

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Handling Returns would be closest to:

A) $13.68 per return handled

B) $1.06 per return handled

C) $36.00 per return handled

D) $0.38 per return handled

37) Heyl 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:

Heyl Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 19

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Average salary per employee $36,000

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 14 24 38

Cost Object Data: Customer A Customer B Customer C

Number of calls received 27 23 4

Number of issues resolved 15 8 8

Number of disputes settled 1 1 1

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer C would be closest to:

A) $114.40

B) $15.20

C) $76.80

D) $22.40

38) Campanaro 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:

Campanaro Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 14

Average salary per employee $48,600

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 20 28 32

Cost Object Data: All Customers

Number of calls routed 41,360

Number of problems resolved 18,260

Number of change orders prepared 670

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

number of employees” would be closest to:

Version 1 26

A) 1.41 employees

B) 14.00 employees

C) (12.59) employees

D) 12.59 employees

39) Grassie 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:

Grassie Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 14

Average salary per employee $45,360

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 26 46

Cost Object Data: All Customers

Number of orders processed 18,310

Number of queries resolved 13,670

Number of credit reviews processed 550

On the Capacity Analysis report in time-driven activity-based costing, the“unused capacity in

minutes” would be closest to:

A) 874,940 minutes

B) 815,470 minutes

C) 756,000 minutes

D) 637,060 minutes

40) Wrench 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:

Wrench Corporation

Version 1 27

Customer Support Department

Data Inputs

Resource Data:

Number of employees 10

Average salary per employee $35,100

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 12 28 38

Cost Object Data: All Customers

Number of calls received 28,620

Number of issues resolved 17,000

Number of disputes settled 1,140

On the Capacity Analysis report in time-driven activity-based costing, the “potential adjustment

in the number of employees” would be closest to:

A) 0.00 employees

B) 2.00 employees

C) 1.00 employees

D) (1.00) employees

41) 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

All Customers

Number of orders processed 17,310

Number of queries resolved 12,600

Number of credit reviews processed 450

Version 1 28

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

42) 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

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)

43) 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

Version 1 29

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)

44) 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

Version 1 30

45) 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

46) 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

Tech Support 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

Version 1 31

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

47) 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

Version 1 32

48) 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) $430.20

B) $187.20

C) $0.00

D) $243.00

49) 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

Version 1 33

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

50) 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

Version 1 34

51) 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

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

52) 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

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

Version 1 35

53) 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

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

54) 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

Version 1 36

55) 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

56) 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

Version 1 37

57) 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

58) 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%

Version 1 38

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

59) 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:

Version 1 39

A) $113.96

B) $10.36

C) $127.77

D) $84.03

60) 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

61) 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

Version 1 40

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

62) 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

Version 1 41

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) $235.90

B) $84.70

C) $151.20

D) $0.00

63) 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 U would be closest to:

A) $0.00

B) $80.50

C) $61.60

D) $18.90

Version 1 42

64) Lamorte 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:

Lamorte Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 20

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: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 22 36

Cost Object Data: Customer X Customer Y Customer Z

Number of orders processed 30 19 6

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) $0.41 per minute

B) $18.45 per minute

C) $20.50 per minute

D) $0.37 per minute

65) Lamorte 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:

Lamorte Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 20

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: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 22 36

Cost Object Data: Customer X Customer Y Customer Z

Version 1 43

Number of orders processed 30 19 6

On the Customer Cost Analysis report in time-driven activity-based costing, the Processing

Orders cost assigned to Customer X would be closest to:

A) $246.00

B) $150.33

C) $8.20

D) $134.84

66) Lamorte 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:

Lamorte Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 20

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: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 22 36

Cost Object Data: Customer X Customer Y Customer Z

Number of orders processed 30 19 6

On the Customer Cost Analysis report in time-driven activity-based costing, the Processing

Orders cost assigned to Customer Y would be closest to:

A) $155.80

B) $104.78

C) $150.33

D) $8.20

67) Lamorte 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:

Lamorte Corporation

Version 1 44

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 20

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: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 22 36

Cost Object Data: Customer X Customer Y Customer Z

Number of orders processed 30 19 6

On the Customer Cost Analysis report in time-driven activity-based costing, the Processing

Orders cost assigned to Customer Z would be closest to:

A) $49.20

B) $8.20

C) $69.24

D) $150.33

68) Gauch 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:

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 18 30 48

Cost Object Data: Customer M Customer N Customer O

Number of calls received 30 15 4

Number of issues resolved 19 12 8

Number of disputes settled 1 1 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 Receiving Calls

cost assigned to Customer M would be closest to:

Version 1 45

A) $216.00

B) $117.60

C) $7.20

D) $113.60

69) Gauch 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:

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 18 30 48

Cost Object Data: Customer M Customer N Customer O

Number of calls received 30 15 4

Number of issues resolved 19 12 8

Number of disputes settled 1 1 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 Receiving

Calls cost assigned to Customer N would be closest to:

A) $117.60

B) $108.00

C) $77.60

D) $7.20

70) Gauch 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:

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 18 30 48

Cost Object Data: Customer M Customer N Customer O

Number of calls received 30 15 4

Number of issues resolved 19 12 8

Number of disputes settled 1 1 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 Receiving Calls

cost assigned to Customer O would be closest to:

Version 1 46

A) $117.60

B) $51.20

C) $7.20

D) $28.80

71) Jahnel 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:

Jahnel Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 7

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 90%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 22 34

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) $0.40 per minute

B) $0.36 per minute

C) $20.00 per minute

D) $18.00 per minute

72) Jahnel 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:

Jahnel Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 7

Average salary per employee $43,200

Version 1 47

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 14 22 34

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Routing Calls would be closest to:

A) $5.60 per call routed

B) $14.00 per call routed

C) $0.40 per call routed

D) $3.86 per call routed

73) Jahnel 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:

Jahnel Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 7

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 90%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 22 34

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Resolving Problems would be closest to:

A) $0.40 per problem resolved

B) $8.80 per problem resolved

C) $1.82 per problem resolved

D) $22.00 per problem resolved

Version 1 48

74) Jahnel 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:

Jahnel Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 7

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 90%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 22 34

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Preparing Change Orders would be closest to:

A) $13.60 per change order prepared

B) $1.18 per change order prepared

C) $0.40 per change order prepared

D) $34.00 per change order prepared

75) 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:

Lindenmuth Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 28

Average salary per employee $38,400

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 80%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 26 46

Cost Object Data: Customer A Customer B Customer C

Number of orders processed 31 19 8

Number of deliveries prepared 18 10 7

Version 1 49

Number of returns handled 1 1 1

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

76) 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:

Lindenmuth Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 28

Average salary per employee $38,400

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 80%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 26 46

Cost Object Data: Customer A Customer B Customer C

Number of orders processed 31 19 8

Number of deliveries prepared 18 10 7

Number of returns handled 1 1 1

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer B would be closest to:

A) $104.00

B) $152.00

C) $274.40

D) $18.40

Version 1 50

77) 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:

Lindenmuth Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 28

Average salary per employee $38,400

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 80%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 20 26 46

Cost Object Data: Customer A Customer B Customer C

Number of orders processed 31 19 8

Number of deliveries prepared 18 10 7

Number of returns handled 1 1 1

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer C would be closest to:

A) $155.20

B) $64.00

C) $18.40

D) $72.80

78) Krueger 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:

Krueger Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 12

Average salary per employee $48,600

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Version 1 51

Minutes per unit of the activity 14 26 40

Cost Object Data: Customer S Customer T Customer U

Number of calls received 27 20 5

Number of issues resolved 15 12 8

Number of disputes settled 1 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) $0.45 per minute

B) $20.25 per minute

C) $0.41 per minute

D) $22.50 per minute

79) Krueger 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:

Krueger Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 12

Average salary per employee $48,600

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 14 26 40

Cost Object Data: Customer S Customer T Customer U

Number of calls received 27 20 5

Number of issues resolved 15 12 8

Number of disputes settled 1 1 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) $363.60

B) $18.00

C) $170.10

D) $175.50

Version 1 52

80) Krueger 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:

Krueger Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 12

Average salary per employee $48,600

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 90%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 14 26 40

Cost Object Data: Customer S Customer T Customer U

Number of calls received 27 20 5

Number of issues resolved 15 12 8

Number of disputes settled 1 1 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) $126.00

B) $140.40

C) $18.00

D) $284.40

81) Krueger 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:

Krueger Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 12

Average salary per employee $48,600

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Version 1 53

Practical capacity percentage 90%

Activity Data: Receiving Calls Resolving Issues Settling Disputes

Minutes per unit of the activity 14 26 40

Cost Object Data: Customer S Customer T Customer U

Number of calls received 27 20 5

Number of issues resolved 15 12 8

Number of disputes settled 1 1 0

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer U would be closest to:

A) $93.60

B) $125.10

C) $0.00

D) $31.50

82) Pierceall 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:

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 16 28 38

Cost Object Data: Customer J Customer K Customer L

Number of calls routed 25 24 3

Number of problems resolved 14 11 8

Number of change orders prepared 0 0 1

The cost per minute of the resource supplied is $0.42.

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Routing Calls would be closest to:

A) $0.42 per call routed

B) $6.72 per call routed

C) $3.63 per call routed

D) $16.00 per call routed

83) Pierceall 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:

Version 1 54

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 16 28 38

Cost Object Data: Customer J Customer K Customer L

Number of calls routed 25 24 3

Number of problems resolved 14 11 8

Number of change orders prepared 0 0 1

The cost per minute of the resource supplied is $0.42.

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Resolving Problems would be closest to:

A) $11.76 per problem resolved

B) $28.00 per problem resolved

C) $0.42 per problem resolved

D) $1.50 per problem resolved

84) Pierceall 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:

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 16 28 38

Cost Object Data: Customer J Customer K Customer L

Number of calls routed 25 24 3

Number of problems resolved 14 11 8

Number of change orders prepared 0 0 1

The cost per minute of the resource supplied is $0.42.

On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven

activity rate for Preparing Change Orders would be closest to:

A) $0.42 per change order prepared

B) $1.11 per change order prepared

C) $15.96 per change order prepared

D) $38.00 per change order prepared

85) Callum 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:

Callum Corporation

Version 1 55

Tech Support Department

Data Inputs

Resource Data:

Number of employees 10

Average salary per employee $44,880

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 24 48

Cost Object Data: Customer M Customer N Customer O All Customers

Number of calls routed 29 21 6 14,210

Number of problems resolved 17 11 9 10,440

Number of change orders prepared 0 1 0 410

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer M would be closest to:

A) $178.64

B) $0.00

C) $358.16

D) $179.52

86) Callum 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:

Callum Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 10

Average salary per employee $44,880

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 24 48

Cost Object Data: Customer M Customer N Customer O All Customers

Number of calls routed 29 21 6 14,210

Version 1 56

Number of problems resolved 17 11 9 10,440

Number of change orders prepared 0 1 0 410

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer N would be closest to:

A) $116.16

B) $266.64

C) $21.12

D) $129.36

87) Callum 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:

Callum Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 10

Average salary per employee $44,880

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 24 48

Cost Object Data: Customer M Customer N Customer O All Customers

Number of calls routed 29 21 6 14,210

Number of problems resolved 17 11 9 10,440

Number of change orders prepared 0 1 0 410

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer O would be closest to:

A) $0.00

B) $132.00

C) $95.04

D) $36.96

Version 1 57

88) Callum 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:

Callum Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 10

Average salary per employee $44,880

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Minutes per unit of the activity 14 24 48

Cost Object Data: Customer M Customer N Customer O All Customers

Number of calls routed 29 21 6 14,210

Number of problems resolved 17 11 9 10,440

Number of change orders prepared 0 1 0 410

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

A) 469,180 minutes

B) 510,000 minutes

C) 550,820 minutes

D) 530,410 minutes

89) Callum 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:

Callum Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 10

Average salary per employee $44,880

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Routing Calls Resolving Problems Preparing Change

Orders

Version 1 58

Minutes per unit of the activity 14 24 48

Cost Object Data: Customer M Customer N Customer O All Customers

Number of calls routed 29 21 6 14,210

Number of problems resolved 17 11 9 10,440

Number of change orders prepared 0 1 0 410

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) ($224,400)

B) ($179,520)

C) ($242,361)

D) ($269,280)

90) Roediger 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:

Roediger Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 8

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 28 36

Cost Object Data: Customer P Customer Q Customer R All Customers

Number of orders processed 30 21 9 12,410

Number of queries resolved 20 8 7 5,880

Number of credit reviews processed 0 1 1 500

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer P would be closest to:

A) $176.40

B) $411.60

C) $0.00

D) $235.20

Version 1 59

91) Roediger 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:

Roediger Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 8

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 28 36

Cost Object Data: Customer P Customer Q Customer R All Customers

Number of orders processed 30 21 9 12,410

Number of queries resolved 20 8 7 5,880

Number of credit reviews processed 0 1 1 500

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer Q would be closest to:

A) $94

B) $15

C) $233

D) $123

92) Roediger 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:

Roediger Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 8

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Version 1 60

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 28 36

Cost Object Data: Customer P Customer Q Customer R All Customers

Number of orders processed 30 21 9 12,410

Number of queries resolved 20 8 7 5,880

Number of credit reviews processed 0 1 1 500

On the Customer Cost Analysis report in time-driven activity-based costing, the total cost

assigned to Customer R would be closest to:

A) $15.12

B) $82.32

C) $150.36

D) $52.92

93) Roediger 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:

Roediger Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 8

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 28 36

Cost Object Data: Customer P Customer Q Customer R All Customers

Number of orders processed 30 21 9 12,410

Number of queries resolved 20 8 7 5,880

Number of credit reviews processed 0 1 1 500

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

Version 1 61

A) 363,620 minutes

B) 356,380 minutes

C) 361,810 minutes

D) 360,000 minutes

94) Roediger 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:

Roediger Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 8

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 14 28 36

Cost Object Data: Customer P Customer Q Customer R All Customers

Number of orders processed 30 21 9 12,410

Number of queries resolved 20 8 7 5,880

Number of credit reviews processed 0 1 1 500

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) ($113,400)

B) ($152,720)

C) ($151,200)

D) ($189,000)

95) Weimar 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:

Weimar Corporation

Order Fulfillment Department

Version 1 62

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $36,720

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 16 28 44

Cost Object Data: All Customers

Number of orders processed 21,750

Number of deliveries prepared 11,130

Number of returns handled 410

On the Capacity Analysis report in time-driven activity-based costing, the “total minutes used to

meet demand” would be closest to:

A) 353,520 minutes

B) 1,326,000 minutes

C) 677,680 minutes

D) 1,001,840 minutes

96) Weimar 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:

Weimar Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $36,720

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 16 28 44

Cost Object Data: All Customers

Number of orders processed 21,750

Number of deliveries prepared 11,130

Version 1 63

Number of returns handled 410

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

A) 663,000 minutes

B) 655,660 minutes

C) 677,680 minutes

D) 648,320 minutes

97) Weimar 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:

Weimar Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $36,720

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 16 28 44

Cost Object Data: All Customers

Number of orders processed 21,750

Number of deliveries prepared 11,130

Number of returns handled 410

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

number of employees” would be closest to:

A) 6.36 employees

B) 6.64 employees

C) (6.64)employees

D) 13.00 employees

Version 1 64

98) Weimar 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:

Weimar Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $36,720

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 16 28 44

Cost Object Data: All Customers

Number of orders processed 21,750

Number of deliveries prepared 11,130

Number of returns handled 410

On the Capacity Analysis report in time-driven activity-based costing, the “potential adjustment

in the number of employees” would be closest to:

A) 7.00 employees

B) (7.00) employees

C) (6.00) employees

D) 6.00 employees

99) Weimar 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:

Weimar Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 13

Average salary per employee $36,720

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Version 1 65

Minutes per unit of the activity 16 28 44

Cost Object Data: All Customers

Number of orders processed 21,750

Number of deliveries prepared 11,130

Number of returns handled 410

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) ($183,600)

B) ($220,320)

C) ($257,040)

D) ($233,395)

100) Spillett 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:

Spillett Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 22

Average salary per employee $43,860

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 18 30 34

Cost Object Data: All Customers

Number of orders processed 43,840

Number of deliveries prepared 20,780

Number of returns handled 690

On the Capacity Analysis report in time-driven activity-based costing, the “potential adjustment

in the number of employees” would be closest to:

A) 8.00 employees

B) (8.00) employees

C) (7.00) employees

D) 7.00 employees

Version 1 66

101) Spillett 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:

Spillett Corporation

Order Fulfillment Department

Data Inputs

Resource Data:

Number of employees 22

Average salary per employee $43,860

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 85%

Activity Data: Processing Orders Preparing Deliveries Handling

Returns

Minutes per unit of the activity 18 30 34

Cost Object Data: All Customers

Number of orders processed 43,840

Number of deliveries prepared 20,780

Number of returns handled 690

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) ($350,880)

B) ($263,160)

C) ($347,449)

D) ($307,020)

102) Gendel 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:

Gendel Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 12

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%

Version 1 67

Cost Object Activity Measure Total Activity Minutes per Unit of

the Activity

Processing Orders Number of orders processed 15,760 16

Resolving Queries Number of queries resolved 9,280 24

Processing Credit Reviews Number of credit reviews processed 600

36

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

A) 669,760 minutes

B) 612,000 minutes

C) 496,480 minutes

D) 727,520 minutes

103) Gendel 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:

Gendel Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 12

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%

Cost Object Activity Measure Total Activity Minutes per Unit of

the Activity

Processing Orders Number of orders processed 15,760 16

Resolving Queries Number of queries resolved 9,280 24

Processing Credit Reviews Number of credit reviews processed 600

36

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) ($264,180)

B) ($301,920)

C) ($226,440)

D) ($269,182)

Version 1 68

104) Deninno 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:

Deninno Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 18

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Cost Object Activity Measure Total Activity Minutes per Unit of

the Activity

Routing Calls Number of calls routed 40,370 16

Resolving Problems Number of problems resolved 21,190 24

Preparing Change Orders Number of change orders prepared 500 42

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

A) 444,520 minutes

B) 810,000 minutes

C) 627,260 minutes

D) 1,175,480 minutes

105) Deninno 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:

Deninno Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 18

Average salary per employee $37,800

Weeks of employment per year 50

Minutes available per week (40 hours × 60 minutes) 2,400

Practical capacity percentage 75%

Cost Object Activity Measure Total Activity Minutes per Unit of

the Activity

Version 1 69

Routing Calls Number of calls routed 40,370 16

Resolving Problems Number of problems resolved 21,190 24

Preparing Change Orders Number of change orders prepared 500 42

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) ($151,200)

B) ($189,000)

C) ($113,400)

D) ($186,698)

106) Ploof 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:

Ploof Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 20

Average salary per employee $34,200

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 16 26 36

Cost Object Data: All Customers

Number of orders processed 48,970

Number of queries resolved 29,650

Number of credit reviews processed 1,620

On the Capacity Analysis report in time-driven activity-based costing, the “total minutes used to

meet demand” would be closest to:

A) 1,519,110 minutes

B) 1,612,740 minutes

C) 1,800,000 minutes

D) 1,706,370 minutes

Version 1 70

107) Ploof 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:

Ploof Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 20

Average salary per employee $34,200

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 16 26 36

Cost Object Data: All Customers

Number of orders processed 48,970

Number of queries resolved 29,650

Number of credit reviews processed 1,620

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

A) 187,260 minutes

B) 1,612,740 minutes

C) 900,000 minutes

D) 543,630 minutes

108) Ploof 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:

Ploof Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 20

Average salary per employee $34,200

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 16 26 36

Cost Object Data: All Customers

Number of orders processed 48,970

Number of queries resolved 29,650

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Number of credit reviews processed 1,620

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

number of employees” would be closest to:

A) 20.00 employees

B) 2.08 employees

C) 17.92 employees

D) (17.92) employees

109) Ploof 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:

Ploof Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 20

Average salary per employee $34,200

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 16 26 36

Cost Object Data: All Customers

Number of orders processed 48,970

Number of queries resolved 29,650

Number of credit reviews processed 1,620

On the Capacity Analysis report in time-driven activity-based costing, the “potential adjustment

in the number of employees” would be closest to:

A) (3.00) employees

B) (2.00) employees

C) 3.00 employees

D) 2.00 employees

110) Ploof 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:

Ploof Corporation

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Customer Service Department

Data Inputs

Resource Data:

Number of employees 20

Average salary per employee $34,200

Practical capacity per employee (in minutes) 90,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 16 26 36

Cost Object Data: All Customers

Number of orders processed 48,970

Number of queries resolved 29,650

Number of credit reviews processed 1,620

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) ($71,159)

B) ($34,200)

C) ($102,600)

D) ($68,400)

111) Schlaefer 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:

Schlaefer Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $46,440

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 26 32

Cost Object Data: All Customers

Number of calls routed 43,740

Number of problems resolved 21,130

Number of change orders prepared 2,220

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On the Capacity Analysis report in time-driven activity-based costing, the “total minutes used to

meet demand” would be closest to:

A) 1,524,130 minutes

B) 1,320,260 minutes

C) 1,116,390 minutes

D) 1,728,000 minutes

112) Schlaefer 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:

Schlaefer Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $46,440

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 26 32

Cost Object Data: All Customers

Number of calls routed 43,740

Number of problems resolved 21,130

Number of change orders prepared 2,220

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

A) 864,000 minutes

B) 635,870 minutes

C) 407,740 minutes

D) 1,320,260 minutes

113) Schlaefer 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:

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Schlaefer Corporation

Tech Support Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $46,440

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 26 32

Cost Object Data: All Customers

Number of calls routed 43,740

Number of problems resolved 21,130

Number of change orders prepared 2,220

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

number of employees” would be closest to:

A) 12.22 employees

B) 3.78 employees

C) (12.22) employees

D) 16.00 employees

114) Ledonne 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:

Ledonne Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $ 41,040

Practical capacity per employee (in minutes) 108,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 12 24 42

Cost Object Data: All Customers

Number of orders processed 31,320

Number of queries resolved 21,580

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Number of credit reviews processed 1,220

On the Capacity Analysis report in time-driven activity-based costing, the “potential adjustment

in the number of employees” would be closest to:

A) (7.00) employees

B) 7.00 employees

C) 8.00 employees

D) (8.00) employees

115) Ledonne 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:

Ledonne Corporation

Customer Service Department

Data Inputs

Resource Data:

Number of employees 16

Average salary per employee $ 41,040

Practical capacity per employee (in minutes) 108,000

Activity Data: Processing Orders Resolving Queries Processing

Credit Reviews

Minutes per unit of the activity 12 24 42

Cost Object Data: All Customers

Number of orders processed 31,320

Number of queries resolved 21,580

Number of credit reviews processed 1,220

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) ($287,280)

B) ($297,540)

C) ($328,320)

D) ($246,240)

116) Lemaire 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:

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Lemaire Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 17

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 10 26 44

Cost Object Data: All Customers

Number of calls received 34,710

Number of issues resolved 16,100

Number of disputes settled 930

On the Capacity Analysis report in time-driven activity-based costing, the “total minutes used to

meet demand” would be closest to:

A) 444,930 minutes

B) 1,530,000 minutes

C) 1,168,310 minutes

D) 806,620 minutes

117) Lemaire 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:

Lemaire Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 17

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 10 26 44

Cost Object Data: All Customers

Number of calls received 34,710

Number of issues resolved 16,100

Number of disputes settled 930

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

minutes” would be closest to:

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A) 806,620 minutes

B) 723,380 minutes

C) 765,000 minutes

D) 744,190 minutes

118) Lemaire 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:

Lemaire Corporation

Customer Support Department

Data Inputs

Resource Data:

Number of employees 17

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 10 26 44

Cost Object Data: All Customers

Number of calls received 34,710

Number of issues resolved 16,100

Number of disputes settled 930

On the Capacity Analysis report in time-driven activity-based costing, the “unused capacity in

number of employees” would be closest to:

A) (8.96) employees

B) 17.00 employees

C) 8.96 employees

D) 8.04 employees

119) In a Cost Analysis report in time-based activity-based costing, the time-driven activity

rate for an activity is computed by dividing the minutes required of the resource per unit of

activity by the cost per minute of the resource supplied.

⊚ true

⊚ false

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120) In time-based activity-based costing, the practical capacity percentage is an estimate of

the company’s capacity in relation to its closest competitor.

⊚ true

⊚ false

121) Time-based activity-based costing does not require extensive interviews with employees

to perform stage one allocations.

⊚ true

⊚ false

122) In a Cost Analysis report in time-based activity-based costing, the first step is to divide

the total cost of the resources suppliedby the practical capacity of the resources supplied to

obtain the cost per minute of the resource supplied.

⊚ true

⊚ false

123) In a Capacity Analysis report in time-based activity-based costing, the unused capacity in

minutes is computed by subtracting the total minutes used to meet demand from the total minutes

available to meet demand.

⊚ true

⊚ false

124) In a Capacity Analysis report in time-based activity-based costing, the unused capacity in

number of employees is computed by multiplying the unused capacity in minutes by the practical

capacity per employee in minutes.

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⊚ true

⊚ false

125) In a Capacity Analysis report in time-based activity-based costing, the impact on

expenses of matching capacity with demand is computed by multiplying the potential adjustment

in the number of employees by the average salary per employee.

⊚ true

⊚ false

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Answer Key

Test name: chapter 7A

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