If a business wants to use Time-Driven Activity-Based Costing (TDABC), then it will need to calculate the cost per transaction after determining the rate for supplying an activity. Which of the following represents the correct formula for calculating the cost per transaction? O Cost per minute for supplying an activity (under TDABC) - Number of minutes per transaction O Cost per minute for supplying an activity (under TDABC) / Number of minutes per transaction O Cost per minute for supplying an activity (under TDABC) + Number of minutes per transaction O Cost per minute for supplying an activity (under TDABC) x Number of minutes per transaction
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We are given the "cost per minute for supplying an activity" and the "number of minutes per transaction". Step 2: To find the total cost for a transaction, we need to multiply the cost per unit of time (in this case, cost per minute) by the total time taken for Show more…
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Schlaefer Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study: Schlaefer Corporation Tech Support Department Data Inputs Resource Data: Number of employees: 16 Average salary per employee: $46,440 Weeks of employment per year: 50 Minutes available per week (40 hours Ă— 60 minutes): 2,400 Practical capacity percentage: 90% Activity Data: Routing Calls Resolving Problems Preparing Change Orders Minutes per unit of the activity: 16 26 32 Cost Object Data: All Customers Number of calls routed: 43,740 Number of problems resolved: 21,130 Number of change orders prepared: 2,220 On the Capacity Analysis report in time-driven activity-based costing, the "unused capacity in minutes" would be closest to: 635,870 minutes 407,740 minutes 864,000 minutes 1,320,260 minutes
Akash M.
Supreeta N.
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