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Question - Suppose instead that Hollman uses time-driven ABC to assign the $ 450,000 of committed resource costs to the three activities. Compute the time-driven activity cost driver rates, assuming 9,000 hours of useful work and the unit time estimates given in the problem statement.
Unit Time (Hours) Estimated Quantity
Handle customer orders 0.50 5400
Process customer complaints 2.50 300
Perform customer credit checks 3.50 930
Under Time Driven ABC, what is the total cost assigned to Handle Customer Orders?
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