1.)

2.)

Cornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a membership basis. Members pay $500 dues per month, which entitle them to a complete wash and detail service monthly. Members may also order additional car washes during the month at a fee of $90. Additional washes are common in both summer and winter months. The number of members also varies with the season. The number of members and the average number of additional washes by members for the months of interest follow: Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional washes are payable in cash. Cornwall estimates that the number of members in July should increase 20 percent above June levels, and the number of additional washes per member should increase by an estimated 12.5 percent. The following information is available for costs incurred in June. All costs except depreciation are paid in cash. Variable service and marketing costs change with volume, measured by number of members. Fixed depreciation will remain the same, but fixed administrative costs will increase by 10 percent beginning July 1 . Equipment maintenance is outsourced and the contract calls for a 5 percent increase beginning July 1 . Required: Prepare a budgeted income statement for July. Note: Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollars. Required: Prepare a budgeted income statement for July. Note: Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollars. Manning Systems is a commercial software vendor that sells billing and other financial software to companies around the globe. Manning operates a centralized call center for customer support calls. Costs associated with use of the center are charged to the division with primary responsibility for the client. There are four geographical divisions: North America (NA), Central and South America (SA), Europe, and Asia-Pacific (APAC). The allocation is based on the length of time of calls made (Minutes). Idle time of the reservation agents and the fixed cost of the equipment are allocated based on the number of calls received (Calls) from clients in each division. Due to recent increased competition in the commercial software business, Manning has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each division was as follows: 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). Complete this question by entering your answers in the tabs below. Determine the allocation to each of the divisions using a single rate based on time used (minutes). Note: Do not round intermediate calculations. Enter your answers in dollars, not in thousands. Complete this question by entering your answers in the tabs below. 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). Note: Do not round intermediate calculations. Enter your answers in dollars, not in thousands