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

Question 81

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(Appendix 7A) Lindenmuth 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:
(Appendix 7A) Lindenmuth 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: \begin{array}{lccc} \text { Activity Data: }&\begin{array}{c} \text { Processing } \\ \text { Orders } \end{array} & \begin{array}{c} \text { Preparing } \\ \text { Deliveries } \end{array} & \begin{array}{c} \text { Handling } \\ \text { Returns } \end{array} \\ \text { Minutes per unit of the activity. }&20 & 26 & 46\\ \text { Cost Object Data: }&\text { Customer A } & \text { Customer B } & \text { Customer C } \\ \text {Number of orders processed }&31 & 19 & 8 \\ \text {Number of deliveries prepared. }&18 & 10 & 7 \\ \text {Number of returns handled }&1 & 1 & 1 \end{array} -On the Customer Cost Analysis report in time-driven activity-based costing,the total cost assigned to Customer C would be closest to: A) $155.20 B) $64.00 C) $18.40 D) $72.80  Activity Data:  Processing  Orders  Preparing  Deliveries  Handling  Returns  Minutes per unit of the activity. 202646 Cost Object Data:  Customer A  Customer B  Customer C Number of orders processed 31198Number of deliveries prepared. 18107Number of returns handled 111\begin{array}{lccc}\text { Activity Data: }&\begin{array}{c}\text { Processing } \\\text { Orders }\end{array} & \begin{array}{c}\text { Preparing } \\\text { Deliveries }\end{array} & \begin{array}{c}\text { Handling } \\\text { Returns }\end{array} \\\text { Minutes per unit of the activity. }&20 & 26 & 46\\\text { Cost Object Data: }&\text { Customer A } & \text { Customer B } & \text { Customer C } \\\text {Number of orders processed }&31 & 19 & 8 \\\text {Number of deliveries prepared. }&18 & 10 & 7 \\\text {Number of returns handled }&1 & 1 & 1\end{array}
-On the Customer Cost Analysis report in time-driven activity-based costing,the total cost assigned to Customer C would be closest to:


A) $155.20
B) $64.00
C) $18.40
D) $72.80

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