Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 280 608 1,000 760 Calls (Thousands) 220 184 472 1,084 During this period, the cost of the call center amounted to $2,520,000 for personnel and $1,950,000 for equipment and other costs. Required: a-1. Determine the allocation to each of the divisions using a single rate based on time used (minutes). a-2. Determine the allocation to each of the divisions using the dual rates based on time used (for personnel costs) and number of calls (for equipment and other costs).
Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 280 608 1,000 760 Calls (Thousands) 220 184 472 1,084 During this period, the cost of the call center amounted to $2,520,000 for personnel and $1,950,000 for equipment and other costs. Required: a-1. Determine the allocation to each of the divisions using a single rate based on time used (minutes). a-2. Determine the allocation to each of the divisions using the dual rates based on time used (for personnel costs) and number of calls (for equipment and other costs).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Calls
(Thousands)
220
184
472
1,084
During this period, the cost of the call center amounted to $2,520,000 for personnel and $1,950,000 for equipment and other costs.
Required:
a-1. Determine the allocation to each of the divisions using a single rate based on time used (minutes).
a-2. Determine the allocation to each of the divisions using the dual rates based on time used (for personnel costs) and number of
calls (for equipment and other costs).
Division
Asia-Pacific
Central and South America
Europe
North America
Req A1
Complete this question by entering your answers in the tabs below.
Reg A2
Minutes
(Thousands)
280
608
1,000
760
Asia-Pacific
Central and South America
Europe
North America
Determine the allocation to each of the divisions using a single rate based on time used (minutes).
Note: Do not round intermediate calculations. Enter your answers in dollars, not in thousands.
Division
Allocated Cost
Req A1
Req A2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0be9fc17-b0ba-45e9-935b-8ef099ba771b%2Fe6559a85-df23-4402-8b98-9c2a1ff915e4%2F723yq1c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calls
(Thousands)
220
184
472
1,084
During this period, the cost of the call center amounted to $2,520,000 for personnel and $1,950,000 for equipment and other costs.
Required:
a-1. Determine the allocation to each of the divisions using a single rate based on time used (minutes).
a-2. Determine the allocation to each of the divisions using the dual rates based on time used (for personnel costs) and number of
calls (for equipment and other costs).
Division
Asia-Pacific
Central and South America
Europe
North America
Req A1
Complete this question by entering your answers in the tabs below.
Reg A2
Minutes
(Thousands)
280
608
1,000
760
Asia-Pacific
Central and South America
Europe
North America
Determine the allocation to each of the divisions using a single rate based on time used (minutes).
Note: Do not round intermediate calculations. Enter your answers in dollars, not in thousands.
Division
Allocated Cost
Req A1
Req A2 >
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education