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Below you will find information on Transport Trucking Ltd. With detailed Actions: traceable costs and physical flow of driver units:
| Actions | Traceable Costs | Physical Flow of Driver Units |
| Account inquiry (hours) | $ 200,000 | 5,000 hours |
| Account billing (lines) | 140,000 | 2,000,000 lines |
| Account verification (accounts) | 75,000 | 20,000 accounts |
| Correspondence (letters) | 25,000 | 2,000 letters |
The above Actions are used by departments: Mechanics and Advisors as shown below:
| | DEPARTMENTS |
| | Mechanics | Advisors |
| Account inquiry (hours) | 1,000 hours | 2,000 hours |
| Account billing (lines) | 200,000 lines | 100,000 lines |
| Account verification (accounts) | 5,000 accounts | 4,000 accounts |
| Correspondence (letters) | 500 letters | 800 letters |
1. What is the cost per driver unit for the account inquiry activity?
A) $40.00
B) $0.07
C) $3.75
D) $12.50
2. What is the cost per driver unit for the account billing activity?
A) $40.00
B) $0.07
C) $3.75
D) $12.50
3. How much of the account billing cost will be assigned to Department Advisors?
A) $14,000
B) $140,000
C) $7,000
D) None of the above
Answer & Explanation
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