Westover Travel offers travel packages using both air and ocean travel. Westover offers two packages, Tourist and Premier, that in the accommodations, class of travel, and so on. Westover has a call center, which handles customer queries and complaints. T call center tracks the number of calls and the number of call-minutes for customers by the package they have purchased. Expect call center data for next month follow. Call center volume: Number of calls. Number of call minutes Call center costs: Call-related Call minute-related Total call center costs Tourist 29,000 126,000 Total $ 222,950 106,920 $ 329,870 Premier 16,500 198,000 The call center at Westover uses a two-stage cost allocation system: It uses the number of calls to allocate call-related costs and number of call minutes to allocate call minute-related costs. a. Call related-overhead rate b. Call minute-related overhead rate c. Call center costs allocated to Tourist d. Call center costs allocated to Premier Required: a. Compute the call-related overhead rate for next month. Note: Round your answer to 2 decimal places. b. Compute the call minute-related overhead rate for next month. Note: Round your answer to 2 decimal places. c. Compute the total call center costs allocated to the Tourist package. d. Compute the total call center costs allocated to the Premier package. per call per call minute
Westover Travel offers travel packages using both air and ocean travel. Westover offers two packages, Tourist and Premier, that in the accommodations, class of travel, and so on. Westover has a call center, which handles customer queries and complaints. T call center tracks the number of calls and the number of call-minutes for customers by the package they have purchased. Expect call center data for next month follow. Call center volume: Number of calls. Number of call minutes Call center costs: Call-related Call minute-related Total call center costs Tourist 29,000 126,000 Total $ 222,950 106,920 $ 329,870 Premier 16,500 198,000 The call center at Westover uses a two-stage cost allocation system: It uses the number of calls to allocate call-related costs and number of call minutes to allocate call minute-related costs. a. Call related-overhead rate b. Call minute-related overhead rate c. Call center costs allocated to Tourist d. Call center costs allocated to Premier Required: a. Compute the call-related overhead rate for next month. Note: Round your answer to 2 decimal places. b. Compute the call minute-related overhead rate for next month. Note: Round your answer to 2 decimal places. c. Compute the total call center costs allocated to the Tourist package. d. Compute the total call center costs allocated to the Premier package. per call per call minute
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 3P: Ohio Logistics manages the logistical activities for firms by matching companies that need products...
Related questions
Question
Expert Solution
Step 1
Overhead costs are those that are not directly related to the production of goods or services, but are necessary for the operation of a business. Examples of overhead costs include rent, utilities, insurance, legal fees, office supplies, advertising, payroll, and accounting fees.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,