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Assume a company incurs $200,000 of customer service salaries. The employees in the Customer Service Department spend their time performing four activities as follows: 40%
Assume a company incurs $200,000 of customer service salaries. The employees in the Customer Service Department spend their time performing four activities as follows: 40% of their time is spent in "Problem Resolution." 25% of their time is spent in "New Account Setup." 20% of their time is spent in "Payment Processing." and 15% is spent in "Other activities. In the company's activity-based costing system, how much of the customer service salaries should not be allocated to customers when analyzing customer profitability? Multiple Choice $80,000 $40.000 $30,000 S50.000
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