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:Time-driven activity rate (cost per unit of activity) ?Processing Orders$4.92?Preparing Deliveries$10.66?Handling Returns$16.40?Cost Object Data:Customer JCustomer K?Number of orders processed2722?Number of deliveries prepared188?Number of returns handled01Required:Using time-driven activity-based costing, determine the total Order Fulfillment Department cost assigned to each customer.
What will be an ideal response?
| ? | ? | Customer J | Customer K |
| ? | Number of orders processed (a) | 27 | 22 |
| ? | Time-driven activity rate (b) | $4.92 | $4.92 |
| ? | Processing Orders costs assigned (a) × (b) | $132.84 | $108.24 |
| ? | ? | ? | ? |
| ? | Number of deliveries prepared (a) | 18 | 8 |
| ? | Time-driven activity rate (b) | $10.66 | $10.66 |
| ? | Preparing Deliveries costs assigned (a) × (b) | $191.88 | $85.28 |
| ? | ? | ? | ? |
| ? | Number of returns handled (a) | 0 | 1 |
| ? | Time-driven activity rate (b) | $16.40 | $16.40 |
| ? | Handling Returns costs assigned (a) × (b) | $0.00 | $16.40 |
| ? | ? | ? | ? |
| ? | Total Order Fulfillment Department costs assigned | $324.72 | $209.92 |
Business
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