221
116) 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.
225
117) 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 Support 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
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.
229
118) 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:
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.
