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At Deutschland Electronics, there is a centralized office used for receiving or transmitting a large volume of enquiries by telephone. Currently, the two product lines

At Deutschland Electronics, there is a centralized office used for receiving or transmitting a large volume of enquiries by telephone. Currently, the two product lines are charged for call center support costs based on sales revenue (allocation base) Last year's summary of call center operations revealed the following:

Surveillance Products

Specialty Products

Number of calls for information

1,000

4,000

Average call length for information

3 minutes

8 minutes

Number of calls for warranties

300

1,200

Average call length for warranties

7 minutes

15 minutes

Sales revenue

$8,000,000

$5,000,000

Deutschland Electronics currently allocates call center support costs using a rate of 0.5% of sales revenue. Compute the amount of call center support costs that would be allocated to Surveillance Products.

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