Astro's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the

Question:

Astro's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,800 calls and incurred costs of $289,440. Of these calls, 4,000 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division under activity-based costing system should amount to:
a. $0.
b. $289,440.
c. $107,200.
d. $182,240.
e. $191,800.