Active Customer Services Ltd uses a traditional activity-based costing system to assign 900,000 of commited resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel: ACTIVITY TIME ESTIMATED COST DRIVER PERCENTAGE QUANTITY Process sales order 55% 15,500 customer orders Process customer complaints 155 300 customer complaints Perform customer credit checks 3096 2.000 credit checks Required: a) Compute the activity cost driver rates using this system. (5 Marks) AND b) Suppose instead that Active Customer Services Ltd uses time-driven activity based costing to assign the 900,000 of committed resource costs to the three activities. Compute the ime-driven activity cost-driver rates assuming 17,000 hours of useful work and the unit time estimates that follow ACTIVITY UNIT TIME (HOURS) Process sales order 0.60 Process customer complaints 2.0 Perform customer credit checks 1.5 (5 Maris) AND c) Suppose that the actual quantities of activities this period are 12,500 customer orders, 250 customer complaints and 1.500 credit checks. Using the information and activity cost driver rates developed in D), determine the cost assigned to each of the activities and estimated hours of unused capacity as well as the associated cost of unused capacity (10 Marks) Question One continued overleaf PTO Page 2 of 6 BMAN21040 Question One continued AND d) After evaluating the information calculated for c) above, what actions might managers take (5 Marks) AND e) Explain why the activity cost driver rates computed in (a) are different from the rates computed in b)