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Manning Systems is a commercial software vendor that sells billing and other financial software to companies around the glob Manning operates a centralized call center for customer support calls. Costs associated with use of the center are charged to the division with primary responsibility for the client. There are four geographical divisions: North America (NA), Central and South America (SA), Europe, and Asia-Pacific (APAC). The allocation is based on the length of time of calls made (Minutes). Idle time of the reservation agents and the fixed cost of the equipment are allocated based on the number of calls received (Calls) from clients in each division. Due to recent increased competition in the commercial software business, Manning has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each division was as follows: Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 270 598 990 750 Calls (Thousands) 210 174 462 1,074 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 numbe of calls (for equipment and other costs).

Manning Systems is a commercial software vendor that sells billing and other financial software to companies around the glob Manning operates a centralized call center for customer support calls. Costs associated with use of the center are charged to the division with primary responsibility for the client. There are four geographical divisions: North America (NA), Central and South America (SA), Europe, and Asia-Pacific (APAC). The allocation is based on the length of time of calls made (Minutes). Idle time of the reservation agents and the fixed cost of the equipment are allocated based on the number of calls received (Calls) from clients in each division. Due to recent increased competition in the commercial software business, Manning has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each division was as follows: Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 270 598 990 750 Calls (Thousands) 210 174 462 1,074 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 numbe of calls (for equipment and other costs).

Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter15: Auditing It Controls Part Ii: Security And Access
Section: Chapter Questions
Problem 10P
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Complete this question by entering your answers in the tabs below. Req A1 Reg A2 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 Asia-Pacific Central and South America Europe North America Show Transcribed Text Req A1 Reg A2 Allocated Cost Division $ Asia-Pacific Central and South America Europe North America 359,100 297,540 790,020 1,836,540 Complete this question by entering your answers in the tabs below. < Req A1 Req A2 > 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). Note: Do not round intermediate calculations. Enter your answers in dollars, not in thousands. Allocated Cost Ć < Req A1 Req A2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req A1 Reg A2 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 Asia-Pacific Central and South America Europe North America Show Transcribed Text Req A1 Reg A2 Allocated Cost Division $ Asia-Pacific Central and South America Europe North America 359,100 297,540 790,020 1,836,540 Complete this question by entering your answers in the tabs below. < Req A1 Req A2 > 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). Note: Do not round intermediate calculations. Enter your answers in dollars, not in thousands. Allocated Cost Ć < Req A1 Req A2 >
Manning Systems is a commercial software vendor that sells billing and other financial software to companies around the globe. Manning operates a centralized call center for customer support calls. Costs associated with use of the center are charged to the division with primary responsibility for the client. There are four geographical divisions: North America (NA), Central and South America (SA), Europe, and Asia-Pacific (APAC). The allocation is based on the length of time of calls made (Minutes). Idle time of the reservation agents and the fixed cost of the equipment are allocated based on the number of calls received (Calls) from clients in each division. Due to recent increased competition in the commercial software business, Manning has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each division was as follows: Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 270 598 990 750 Calls (Thousands) 210 174 462 1,074 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). Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Manning Systems is a commercial software vendor that sells billing and other financial software to companies around the globe. Manning operates a centralized call center for customer support calls. Costs associated with use of the center are charged to the division with primary responsibility for the client. There are four geographical divisions: North America (NA), Central and South America (SA), Europe, and Asia-Pacific (APAC). The allocation is based on the length of time of calls made (Minutes). Idle time of the reservation agents and the fixed cost of the equipment are allocated based on the number of calls received (Calls) from clients in each division. Due to recent increased competition in the commercial software business, Manning has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each division was as follows: Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 270 598 990 750 Calls (Thousands) 210 174 462 1,074 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). Complete this question by entering your answers in the tabs below.
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