Qinto Company sells two types of products, basic and deluxe. The company provides technical support for users of its products at an expected cost of $250,000 per year. The company expects to process 10,000 customer service calls per year. 1. Determine the company’s cost of technical support per customer service call. 2. During the month of January, Qinto received 650 calls for customer service on its deluxe model and 150 calls for customer service on its basic model. Assign technical support costs to each model using activity-based costing (ABC).
Qinto Company sells two types of products, basic and deluxe. The company provides technical support for users of its products at an expected cost of $250,000 per year. The company expects to process 10,000 customer service calls per year. 1. Determine the company’s cost of technical support per customer service call. 2. During the month of January, Qinto received 650 calls for customer service on its deluxe model and 150 calls for customer service on its basic model. Assign technical support costs to each model using activity-based costing (ABC).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Qinto Company sells two types of products, basic and deluxe. The company provides technical support for
users of its products at an expected cost of $250,000 per year. The company expects to process 10,000
customer service calls per year.
1. Determine the company’s cost of technical support per customer service call.
2. During the month of January, Qinto received 650 calls for customer service on its deluxe model and
150 calls for customer service on its basic model. Assign technical support costs to each model using
activity-based costing (ABC).
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