Exercise 12-11 Allocating to solve a timing problem LO 12-3 Rundle Air is a large airline...
Exercise 12-11 Allocating to solve a timing problem LO 12-3
Rundle Air is a large airline company that pays a customer relations representative $7,400 per month. The representative, who processed 1,110 customer complaints in January and 1,380 complaints in February, is expected to process 22,200 customer complaints during 2018.
Required
-
Determine the total cost of processing customer complaints in January and in February.
| Month | Allocated Cost |
| January | |
| February |
Homework Answers
| Cost per consumer complaint = (7400*12)/22200 = 4 | ||||
| Total cost of processing customer complaints | ||||
| Month | allocated cost | |||
| January (1110*4) | 4440 | |||
| February (1380*4) | 5520 | |||
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