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

question 9

Multiple Choice

(Appendix 7A) Lamorte Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment 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 Processing Orders cost assigned to Customer Z would be closest to:

• A) $49.20
• B) $8.20
• C) $69.24
• D) $150.33

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Definitions:

Clarity

The quality of being easily understood or free from ambiguity.

Order Instrument

A negotiable instrument that is payable “to the order of an identified person” or “to an identified person or order.”

Payee

The individual or entity to whom a check, draft, or note is made payable.

Identified

Recognized or determined to be a particular entity or object, especially through specific characteristics or methods.