Homework Answers
| Ans. 1 | Cost of technical support per customer service call = Expected cost / Expected customer service call | |||||
| $250,000 / 10,000 | ||||||
| $25 | per customer service call | |||||
| Ans. 2 | Assign technical support costs to each model | |||||
| Model | Activity Rate (a) | Cost driver quantity incurred (b) | Allocated Cost (a*b) | |||
| Deluxe | $25 per customer service call | 550 | calls | $13,750 | ||
| Basic | $25 per customer service call | 250 | calls | $6,250 | ||
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