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9 John's Custom Computer Shop (CCS) assembles computers for both individual and corporate customers. The company's organized into two divisions: Personal and Business. Once a computer is built. It is shipped to the customer. Bring for all customers is handled b the corporate Accounts Recevable Department Accounts Receivable performs the major activitesbining and dispute resolucon Bitling refers to preparing and sending the bills as well as processing the payments. Dispute recoton occurs when a customer refuses to pay usually due to an error in biling The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bits prepared Kye, the manager of the Business division, has complained that the allocated costs from Accounts Recenable are beginning to make the business division look unprofitable and has asked you to recommend some changes to the allocation system the agrees with your recommendation, he will pass them on to the chief financial officer. Data on costs and activities in the Accounts Receivable Department follow Total Number of balls prepared Number of disputes Personal 55 Business 300 15 The Accounts Receivable Department incurred the following costs during the year Billing Dispute resolution Total $38,256 3700 $75,750 Required: a. Under the current allocation system, what is the cost that will be allocated from Accounts Receivable to Personal? To Busines? b. Suppose the company implements an activity-based cost system for Accounts Receivable with two activities, billing and dispute resolution What is the cost that will be allocated from Accounts Receivable to Personal? To Business? Use the number of bilis prepared as the cost driver for billing costs and the number of disputes for dispute resolution costs Complete this question by entering your answers in the tabs below. Required Regu Under the current allocation system, what is the cost that will be allocated from Accounts Receivable to personal To Business (Do not round Intermediate calculations.) Personal Allocated costs M GE & Prov NE 9 Data on costs and actvities in the Accounts Receivable Department follow Total er les pared 100 soutes 15 sa The Accounts Receivable Department incurred the following costs during the year. $20 Ditertio 575. Required a Under the current location system, what is the cost that we de stocated from Accounts Receivable to personal To Business 1. Suppose the company implements an activity-based cost system for Accounts Receivable with two ac bong and dispute resolution. What is the cost that will be located from Accounts Receivable to personal To Business Use the number of prepared as the cost over for being costs and the number of disputes for dispute resolution cours Complete this question by entering your answers in the tabs below. Do the company implement based on for Account Rewable with activities billing and on what is the cost that be located from Accounts Recevable to personal? To Business? Use the number pred as the derfor bling costs and the number of putes for dispute resolution costs Required A