Assume XYZ Corp incurs $250,000 in technical support salaries. The employees in the Technical Support Department spend their time performing four activities as follows: • 45% of their time is spent in "Hardware Troubleshooting" • • 30% of their time is spent in "Software Installation" 15% of their time is spent in "User Training" ⚫ 10% is spent in "Documentation" In the company's activity-based costing system, how much of the technical support salaries would be allocated to the "Software Installation" activity? A) $112,500 B) $75,000 C) $37,500 D) $25,000
Assume XYZ Corp incurs $250,000 in technical support salaries. The employees in the Technical Support Department spend their time performing four activities as follows: • 45% of their time is spent in "Hardware Troubleshooting" • • 30% of their time is spent in "Software Installation" 15% of their time is spent in "User Training" ⚫ 10% is spent in "Documentation" In the company's activity-based costing system, how much of the technical support salaries would be allocated to the "Software Installation" activity? A) $112,500 B) $75,000 C) $37,500 D) $25,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1MAD: Advent Software uses standards to manage the cost of the programming staff. There are two programmer...
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Transcribed Image Text:Assume XYZ Corp incurs $250,000 in technical support salaries. The
employees in the Technical Support Department spend their time performing
four activities as follows:
•
45% of their time is spent in "Hardware Troubleshooting"
•
•
30% of their time is spent in "Software Installation"
15% of their time is spent in "User Training"
⚫ 10% is spent in "Documentation"
In the company's activity-based costing system, how much of the technical
support salaries would be allocated to the "Software Installation" activity?
A) $112,500
B) $75,000
C) $37,500
D) $25,000
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