Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Activities Activity Cost Billing error correction $60,000 Cable signal testing 140,000 Reinstalling service (installed incorrectly the first time) 40,000 Repairing satellite equipment 50,000 Repairing underground cable connections to the customer 25,000 Replacing old technology cable with higher quality cable 175,000 Replacing old technology signal switches with higher quality switches 150,000 Responding to customer home repair requests 30,000 Training employees 80,000 Total 750,000 Prepare a Pareto chart of these activities.
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Activities Activity Cost Billing error correction $60,000 Cable signal testing 140,000 Reinstalling service (installed incorrectly the first time) 40,000 Repairing satellite equipment 50,000 Repairing underground cable connections to the customer 25,000 Replacing old technology cable with higher quality cable 175,000 Replacing old technology signal switches with higher quality switches 150,000 Responding to customer home repair requests 30,000 Training employees 80,000 Total 750,000 Prepare a Pareto chart of these activities.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 13E
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- Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:
|
Activities |
Activity Cost |
|
Billing error correction |
$60,000 |
|
Cable signal testing |
140,000 |
|
Reinstalling service (installed incorrectly the first time) |
40,000 |
|
Repairing satellite equipment |
50,000 |
|
Repairing underground cable connections to the customer |
25,000 |
|
Replacing old technology cable with higher quality cable |
175,000 |
|
Replacing old technology signal switches with higher quality switches |
150,000 |
|
Responding to customer home repair requests |
30,000 |
|
Training employees |
80,000 |
|
Total |
750,000 |
Prepare a Pareto chart of these activities.
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