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Exercise 12-11A (Algo) Allocating to solve a timing problem LO 12-3 Rooney Air is a large airline company that pays a custome
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Answer #1

Solution:

Total cost of representative for the Whole year = $13,825 *12

=$165,900

Total number of customer complaints processed in a year =23,700

Therefore, cost of processing per customer complaints = $165,900/23,700

=$7 per customer complaint.

Calculation of total cost of processing customer complaints:

Month Allocated cost
January $7,630 ($7*1,090)
February $9,590 ($7*1,370)
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