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

question 53

Multiple Choice

Gendel 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 Capacity Analysis report in time-driven activity-based costing, the "unused capacity in minutes" would be closest to:

• A) 669,760 minutes
• B) 612,000 minutes
• C) 496,480 minutes
• D) 727,520 minutes

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Definitions:

Direct Labor

The labor cost directly associated with the production of goods or services, including wages for workers who physically produce a product.

Fixed Overhead Budget Variance

The difference between the fixed overhead costs that were budgeted and the actual fixed overhead costs incurred.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production or sales volume, such as salaries of supervisors and rent for factory premises.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the volume of production, including costs like factory rent, salaries of supervisors, and depreciation of factory equipment.