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 J | Customer K | Customer L |
| ? | Number of orders processed (a) | 31 | 17 | 4 |
| ? | 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) | 20 | 10 | 7 |
| ? | 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) | 1 | 0 | 1 |
| ? | 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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