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 XCustomer YCustomer Z?Number of calls routed28205?Number of problems resolved1588?Number of change orders prepared010Required:Using time-driven activity-based costing, determine the total Tech Support Department cost assigned to each customer.
What will be an ideal response?
| ? | ? | Customer X | Customer Y | Customer Z |
| ? | Number of calls routed (a) | 28 | 20 | 5 |
| ? | Time-driven activity rate (b) | $4.20 | $4.20 | $4.20 |
| ? | Routing Calls costs assigned (a) × (b) | $117.60 | $84.00 | $21.00 |
| ? | ? | ? | ? | ? |
| ? | Number of problems resolved (a) | 15 | 8 | 8 |
| ? | Time-driven activity rate (b) | $11.76 | $11.76 | $11.76 |
| ? | Resolving Problems costs assigned (a) × (b) | $176.40 | $94.08 | $94.08 |
| ? | ? | ? | ? | ? |
| ? | Number of change orders prepared (a) | 0 | 1 | 0 |
| ? | Time-driven activity rate (b) | $13.44 | $13.44 | $13.44 |
| ? | Preparing Change Orders costs assigned (a) × (b) | $0.00 | $13.44 | $0.00 |
| ? | ? | ? | ? | ? |
| ? | Total Tech Support Department costs assigned | $294.00 | $191.52 | $115.08 |
Business
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