Garber Company uses a traditional activity-based costing system to assign $600,000 of committed resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel:

Activity	Time Percentage	Estimated cost driver quantity
Handle customer orders	75%	8,000 customer orders
Process customer complaints	10%	400 customer complaints
Perform customer credit checks	15%	450 credit checks
	100%

1. Compute the activity cost driver rates using this system.

2. Suppose instead that Garber uses time-driven ABC to assign the $600,00 of committed resource costs to the three activities. What are the time-driven activity cost driver rates, assuming 10,000 hours of useful work and the unit time estimates below?

Activity	Unit time (hours)
Handle customer orders	0.75
Process customer complaints	3.50
Perform customer credit checks	3.00

Suppose that the quantities of actual activities this period are 8,500 customers, 500 customer complaints, and 350 credit Checks.

3. Using the information and activity cost driver rates from Question 1, determine the cost assigned to each of the activities.

4. Using the information and activity cost driver rates from Question 2, determine the cost assigned to each of the activities.

5. Using the information and activity cost driver rates from Question 4, determine the estimated percentage of unused capacity and the unassigned cost.