Hi there,

I would appreciate any help with the below, thank you!

John's IEIustom Computer Shop {JCCS} assembles computers for both individual and corporate customers. The company is organized into two divisions: Personal and Business. Once a computer is buitt, itis shipped to the customer. Billing for all customers is handled by the corporate Accounts Receivable Department Accounts Receivable performs two major activities: billing and dispute resolution. Billing refers to preparing and sending the bills as well as processing the payments. Dispute resolution occurs when a customer refuses to pay, usually due to an error in billing. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. Kyle, the manager of the Business division, has complained that the allocated costs from Accounts Receivable are beginning to make the business division look unprofitable and has asked you to recommend some changes to the allocation system. If he agrees with your recommendation, he will pass them on to the chief nancial officer. Data on costs and activities in the Accounts Receivable Department follow. Personal Business Total Number of bills prepared 66% 356 950 Number of disputes 55 15 80 The Accounts Receivable Department incurred the following costs during the year. Billing $43,590 Dispute resolution 48,660 Total 5 87, 590 Required: a. Under the current allocation system, what is the cost that will be allocated from Accounts Receivable to Personal? To Business? b. Suppose the company implements an activitybased 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 bills prepared as the cost driver for billing costs and the number of disputes for dispute resolution costs. Required A Required B 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 Business Allocated costsRequired A Required 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 bills prepared as the cost driver for billing costs and the number of disputes for dispute resolution costs. Personal Business Billing Dispute resolution