(Appendix 7A) Krueger Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study:
Krueger Corporation
Customer Support Department
Data Inputs

\begin{array}{lr}\text { Resource Data: }\\\text {Number of employees }&12\\\text {Average salary per employee }&\$48,600\\\text {Weeks of employment per year. }&50\\\text {Minutes available per week ( 40 hours \( \times 60 \) minutes) }&2,400\\\text {Practical capacity percentage }&90\%\\\end{array}

\begin{array}{lccc}\text { Activity Data: }&\begin{array}{c}\text { Receiving } \\\text { Calls }\end{array} & \begin{array}{c}\text { Resolving } \\\text { Issues }\end{array} & \begin{array}{c}\text { Settling } \\\text { Disputes }\end{array} \\\text { Minutes per unit of the activity }&24 & 26 & 40\end{array}

\begin{array}{lccc}\text {Cost Object Data: }&\text { Customer S } & \text { Customer T } & \text { Customer U } \\\text {Number of calls received. }&27 & 20 & 5 \\\text {Number of issues resolved }&15 & 12 & 8 \\\text {Number of disputes settled }&1 & 1 & 0\end{array}

-On the Customer Cost Analysis report in time-driven activity-based costing,the cost per minute of the resource supplied would be closest to:
A) $0.45 per minute
B) $20.25 per minute
C) $0.41 per minute
D) $22.50 per minute

Salem Corporation Is Conducting a Time-Driven Activity-Based Costing Study in Its

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified