Roediger 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: On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer Q would be closest to:
A) $94
B) $15
C) $233
D) $123

Question

Roediger 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:  On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer Q would be closest to:
A) $94 
B) $15 
C) $233 
D) $123

Quizplus · Accepted Answer

To find the total cost assigned to Customer Q, we need to first find the total cost of each activity for that customer. Using the data provided, we can calculate this as follows:
Activity A: 2 hours x $30/hour = $60
Activity B: 1 hour x $20/hour = $20
Activity C: 3 hours x $25/hour = $75
Activity D: 2 hours x $10/hour = $20
Total cost for Customer Q = $60 + $20 + $75 + $20 = $175
Adding the allocated overhead cost of $58 gives us a total cost of $233, which is closest to option C. Therefore, the answer is C.

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