203
109) 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:
Processing Orders
Resolving Queries
Processing Credit Reviews
Cost Object Data:
Customer K
Customer L
Number of orders processed
17
4
Number of queries resolved
10
7
Number of credit reviews processed
0
1
Required:
Using time-driven activity-based costing, determine the total Customer Service Department cost
assigned to each customer.
205
110) 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:
Routing Calls
Resolving Problems
Preparing Change Orders
Cost Object Data:
Customer Y
Customer Z
Number of calls routed
20
5
Number of problems resolved
8
8
Number of change orders prepared
1
0
Required:
Using time-driven activity-based costing, determine the total Tech Support Department cost
assigned to each customer.
207
111) 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
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:
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
24
38
Cost Object Data:
Customer H
Number of orders processed
17
Number of queries resolved
10
Number of credit reviews processed
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.
112) 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:
Processing Orders
Preparing Deliveries
Handling Returns
Cost Object Data:
Customer K
Number of orders processed
22
Number of deliveries prepared
8
Number of returns handled
1
Required:
Using time-driven activity-based costing, determine the total Order Fulfillment Department cost
assigned to each customer.
Customer J
Number of orders processed (a)
Time-driven activity rate (b)
$4.92
Processing Orders costs assigned (a) × (b)
Number of deliveries prepared (a)
Time-driven activity rate (b)
$10.66
Preparing Deliveries costs assigned (a) × (b)
Number of returns handled (a)
Time-driven activity rate (b)
$16.40
Handling Returns costs assigned (a) × (b)
$0.00
Total Order Fulfillment Department costs
assigned
211
113) 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:
Resolving
Issues
Settling
Disputes
Minutes per unit of the activity
22
50
Cost Object Data:
Number of calls received
Number of issues resolved
Number of disputes settled
Required:
Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the
total Customer Support Department cost assigned to Customer J.
214
114) 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:
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:
Resolving
Issues
Settling
Disputes
Minutes per unit of the activity
22
44
Cost Object Data:
Customer B
All Customers
Number of calls received
17
40,070
Number of issues resolved
8
25,990
Number of disputes settled
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.
217
115) 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
Processing
Credit
Reviews
Minutes per unit of the
activity
18
38
Cost Object Data:
Customer M
Customer O
All Customers
Number of orders
processed
31
9
35,230
Number of queries
resolved
17
8
26,390
Number of credit reviews
processed
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.