Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 280 608 1,000 760 Calls (Thousands) 220 184 472 1,084 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).

Division Asia-Pacific Central and South America Europe North America Minutes (Thousands) 280 608 1,000 760 Calls (Thousands) 220 184 472 1,084 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).

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...

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