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Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 15,700 calls and incurred costs of
Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 15,700 calls and incurred costs of $329,700. If 3,150 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division under activity-based costing system should amount to:
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