1. Calculations
Estimated techincal support costs | $170,000 | $17 | Per service call |
Estimated number of service calls | 10,000 |
2. Assign technical support costs to each model
Model | Activity rate | Cost driver quantity incurred | Allocated cost |
Deluxe | $17 per call | 470 calls | $7,990 |
Basic | $17 per call | 170 calls | $2,890 |
____×____
All the best
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Seved Help Save & Exit Su Check my work Aziz Company sells two types of products,...
Aziz Company sells two types of products, basic and deluxe. The company provides technical support for users of its products at an expected cost of $250,000 per year. The company expects to process 10,000 customer service calls per year. Required: 1. Determine the company's cost of technical support per customer service call points Skipped 2. During the month of January, Ariz received 550 calls for customer service on its deluxe model and 250 calls for customer service on its basic...
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