Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: Call Center Cost Calls Taken April May 7,752 $ 84,042 7,721 $ 83,859 June 7,762 $ 84,105 July 7,761 $ 84,088 August 7,726 $ 83,890 September 7,738 $ 83,946 October 7,783 $ 84,223 November 7,771 $ 84,172 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Answer is complete but not entirely correct. Variable cost 5.90 per call Fixed cost $ 72,681 per month

Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: Call Center Cost Calls Taken April May 7,752 $ 84,042 7,721 $ 83,859 June 7,762 $ 84,105 July 7,761 $ 84,088 August 7,726 $ 83,890 September 7,738 $ 83,946 October 7,783 $ 84,223 November 7,771 $ 84,172 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Answer is complete but not entirely correct. Variable cost 5.90 per call Fixed cost $ 72,681 per month

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT HR IT tickets Employees 0 16 1,500 0 Publishing 2,400 24 Binding 2,100 40 Department direct costs $ 150,000 $ 247,500 $ 430,000 $ 390,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Answer is not complete. Cost Allocation To: From: IT HR Publishing Binding Service department costs $ 150,000 $ 247,500 $ 0 $ IT 2,400 x 0 2,100 × HR 1,500 x Total $ 150,000 $ 247,500 $…