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Exercise 12-11 Allocating to solve a timing problem LO 12-3 Rooney Air is a large airline company that pays a customer relati
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Answer #1

Monthly payment for customer relations representative = $5,325

Annual payment for customer relations representative = 12 * Monthly payment for customer relations representative
Annual payment for customer relations representative = 12 * $5,325
Annual payment for customer relations representative = $63,900

Customer relations representative payment per customer complaints = Annual payment for customer relations representative / Number of customer complaints per year
Customer relations representative payment per customer complaints = $63,900 / 21,300
Customer relations representative payment per customer complaints = $3.00

January:

Cost of processing customer complaints allocated = Customer relations representative payment per customer complaints * Number of customer complaints
Cost of processing customer complaints allocated = $3.00 * 1,180
Cost of processing customer complaints allocated = $3,540

February:

Cost of processing customer complaints allocated = Customer relations representative payment per customer complaints * Number of customer complaints
Cost of processing customer complaints allocated = $3.00 * 1,330
Cost of processing customer complaints allocated = $3,990

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