181
100) 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)
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Total minutes available to meet demand
1,728,000
101) 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 “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
102) 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:
A) 806,620 minutes
B) 723,380 minutes
C) 765,000 minutes
D) 744,190 minutes
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Total minutes available to meet demand
1,530,000
–
103) 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
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Total minutes available to meet demand
1,530,000
–
190
104) 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.
193
105) 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
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.
106) 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.
Customer P
Number of calls received (a)
Time-driven activity rate (b)
$5.46
Receiving Calls costs assigned (a) × (b)
Number of issues resolved (a)
Time-driven activity rate (b)
$8.58
Resolving Issues costs assigned (a) × (b)
Number of disputes settled (a)
Time-driven activity rate (b)
$13.26
Settling Disputes costs assigned (a) × (b)
$13.26
Total Customer Support Department costs
assigned
197
107) 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.
200
108) 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.