(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

---

Definitions:

Immigration

The action of coming to live permanently in a foreign country, a phenomenon that has shaped societies and economies globally.

White Privilege

The societal privileges that benefit white people over non-white people in certain societies, particularly if they are otherwise under the same social, political, or economic circumstances.

Anglo-European Descent

Refers to individuals whose ancestry can be traced back to Europe, particularly to the countries of England and other European nations.

Social Constructs

Concepts or perceptions that exist because people in a society agree to behave as if they exist or agree that they hold a certain meaning.