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

question 6

Multiple Choice

Jahnel Corporation is conducting a time-driven activity-based costing study in its Tech Support 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 cost per minute of the resource supplied would be closest to:

• A) $0.40 per minute
• B) $0.36 per minute
• C) $20.00 per minute
• D) $18.00 per minute

---

Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold to customers.

LIFO Inventory Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting period; stands for Last-In, First-Out.

Inventory Costing Methods

Techniques used to assign costs to inventory items, such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and weighted average cost.