Homework Answers
a) Allocating of cost into time period as per Activity based costing.
Total complaint cost to company for the year is $5850*12= $70200
Total complaints during the year= 23400
Cost driver(cost per complaint) = Total complaint cost/ Total complaints
= $70200/ 23400
$3 per complaint
Month Allocated cost
January $3 per complaint* 1040 complaints = $3120
February $3 per complaint* 1480 complaints = $4440
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