acius Corporationis conducting a TDABC 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 Average salary per employee Weeks of enployment per year Minutes avallable per week (40 hours x 60 minutes) Practical capacity percentage 11 $ 39,7se 50 2,400 Activity Data: Minutes per unit of the activity Processing Orders 12 Processing Resolving Issues Credit Reviews 24 36 Cost object Data: Number of orders processed Number of queries resolved Number of credit reviewS processed customer S 35 18 Per TDABC, the total cost assigned to Customer S would be closest to: Oa $14.04. Ob $163.80. Oc $346.32. d. $168 48.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Pacius Corporation is conducting a TDABC 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
Average salary per employee
Weeks of employment per year
Minutes avallable per week (40 hours x 6e minutes)
Practical capacity percentage
11
39,7se
50
2,400
Activity Data:
Minutes per unit of the activity
Processing
Orders
Processing
Resolving Issues Credit Reviews
12
24
36
Cost object Data:
Number of orders processed
Number of queries resolved
Number of credit reviens processed
Customer S
35
18
Per TDABC, the total cost assigned to Customer S would be closest to
O a $14.04.
Ob. $163.80.
Oc $346.32,
Od $168 48.
Transcribed Image Text:Pacius Corporation is conducting a TDABC 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 Average salary per employee Weeks of employment per year Minutes avallable per week (40 hours x 6e minutes) Practical capacity percentage 11 39,7se 50 2,400 Activity Data: Minutes per unit of the activity Processing Orders Processing Resolving Issues Credit Reviews 12 24 36 Cost object Data: Number of orders processed Number of queries resolved Number of credit reviens processed Customer S 35 18 Per TDABC, the total cost assigned to Customer S would be closest to O a $14.04. Ob. $163.80. Oc $346.32, Od $168 48.
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