Assume a company incurs $196,000 of customer service salaries. The employees in the Customer service Department spend their time performing four activities as follows: 40% of their time is spen i Problem Resolution," 25% of their time is spent in "New Account Setup," 20% of their time is spent in Payment Processing," and 15% is spent in "Other" activities. In the company's activity-based costing ystem, how much of the customer service salaries would be allocated to the "New ACcount Setup" ctivity? Multiple Choice $127,400 $78,400 $49,000 $39,200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company incurs $196,000 of customer service salaries. The employees in the Customer
Service Department spend their time performing four activities as follows: 40% of their time is spent in
"Problem Resolution," 25% of their time is spent in "New Account Setup," 20% of their time is spent in
"Payment Processing," and 15% is spent in "Other" activities. In the company's activity-based costing
system, how much of the customer service salaries would be allocated to the "New Account Setup"
activity?
Multiple Choice
$127,400
$78,400
$49,000
$39,200
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Transcribed Image Text:Assume a company incurs $196,000 of customer service salaries. The employees in the Customer Service Department spend their time performing four activities as follows: 40% of their time is spent in "Problem Resolution," 25% of their time is spent in "New Account Setup," 20% of their time is spent in "Payment Processing," and 15% is spent in "Other" activities. In the company's activity-based costing system, how much of the customer service salaries would be allocated to the "New Account Setup" activity? Multiple Choice $127,400 $78,400 $49,000 $39,200 < Prev 3 of 20 Next > wwww MAR 22 MacBook Air
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