First Décor Has Analyzed the Indirect Costs Associated with Servicing

question 86

Multiple Choice

First Décor has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability.Results for the year appear below: $\begin{array}{lrlr}\hline \text { Cost Pool } & \text { Cost } & \text { Cost Driver } & \text { Quantity } \\\hline \text { Processing electronic orders } & \$ 400,000 & \text { N umber of orders } & 40,000 \\\text { Processing non-electronic orders } & 120,000 & \text { N umber of orders } & 8,000 \\\text { Picking orders } & 240,000 & \text { N umber of different products ordered } & 120,000 \\\text { Packaging orders } & 180,000 & \text { N umber of items ordered } & 150,000 \\\text { Returns } & 15,000 & \text { Number of returns } & 3,000\end{array}$ What is the cost allocation for two Internet orders for 22 items with 7 different products and one return?

• A)$65.40
• B)$33.20
• C)$60.40
• D)$40.40

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Definitions:

Sensitive Data

Information that must be protected from unauthorized access to safeguard the privacy or security of an individual or organization.

CMOS Battery

A small battery on the motherboard that powers the BIOS firmware settings memory.

Boot Sequence

The order of operations that a computer's hardware and firmware follow to boot up the operating system from startup.