(Appendix 7A) Krueger Corporation Is Conducting a Time-Driven Activity-Based Costing

question 57

Multiple Choice

(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 total cost assigned to Customer S would be closest to:

• A) $363.60
• B) $18.00
• C) $170.10
• D) $175.50

Determine the appropriate recording of purchases and sales transactions.

Comprehend the procedure for posting journal entries to ledger accounts.

Distinguish between the different types of special journals.

Understand the concept of control accounts and their relevance to subsidiary ledgers.

---

Definitions:

Wine Magazine's Ratings

Evaluations or classifications provided by wine publications that assess the quality, taste, and value of wines.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group fall.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains values within specified intervals.

Standard Distribution Table

A mathematical table used for finding areas under the curve of the standard normal distribution, often used in statistics.