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:Time-driven activity rate (cost per unit of activity) ?Processing Orders$7.00?Resolving Queries$7.70?Processing Credit Reviews$14.00?Cost Object Data:Customer JCustomer KCustomer L?Number of orders processed31174?Number of queries resolved20107?Number of credit reviews processed101Required:Using time-driven activity-based costing, determine the total Customer Service Department cost assigned to each customer.

What will be an ideal response?



??Customer JCustomer KCustomer L
?Number of orders processed (a)31174
?Time-driven activity rate (b)$7.00$7.00$7.00
?Processing Orders costs assigned (a) × (b)$217.00$119.00$28.00
?????
?Number of queries resolved (a)20107
?Time-driven activity rate (b)$7.70$7.70$7.70
?Resolving Queries costs assigned (a) × (b)$154.00$77.00$53.90
?????
?Number of credit reviews processed (a)101
?Time-driven activity rate (b)$14.00$14.00$14.00
?Processing Credit Reviews costs assigned (a) × (b)$14.00$0.00$14.00
?????
?Total Customer Service Department costs assigned$385.00$196.00$95.90

Business

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