E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three...
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Accounting
E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its customers. Information on those activities for the month of July follows:
Cost Pools
Cost Drivers
Estimated Overhead Cost
Expected Use of Cost Drivers
Order taking costs
Number of orders
$20,592
187,200 orders
Technology support
Number of minutes
11,700
234,000 minutes
Picking and shipping costs
Number of DVDs
39,624
330,200 DVDs
During July, the Tucker family placed 17 orders consisting of 21 DVDs. Tucker required 7 minutes of tech support. Customers pay $9.00 per month to rent unlimited DVDs. Using ABC, how much overhead is applied to the Tucker family account for technology support?
Some other answer
$0.35
$1.87
$0.05
Answer & Explanation
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