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

question 89

Multiple Choice

(Appendix 7A) Gauch 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:
The cost per minute of the resource supplied is $0.40.
-On the Customer Cost Analysis report in time-driven activity-based costing,the Receiving Calls cost assigned to Customer O would be closest to:

• A) $117.60
• B) $51.20
• C) $7.20
• D) $28.80

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Definitions:

Payroll Tax Expense

The taxes that an employer incurs based on employee wages, including Social Security and Medicare taxes.

Interest Calculations

The process of determining the interest earned or paid over a specific period of time based on the principal amount and the rate of interest.

Journalize

The process of recording transactions in a company's journal as part of the accounting cycle.

Maturity

The date on which the principal or final payment is due on a loan or security.