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John is the manager for Crane Corp, an HVAC company, and he is debating the implementation of Time-Driven Activity-Based Costing (TDABC). After meeting with management,
John is the manager for Crane Corp, an HVAC company, and he is debating the implementation of Time-Driven Activity-Based Costing (TDABC). After meeting with management, he realized that the company may not be fully utilizing its available capacity, and he believes this method will shed some light on their current state of affairs. John will begin his analysis with the customer service center. This department stays very busy, and handled the following volume of activities: cold sales calls, 7500 calls; repeat service calls, 6400 calls; and customer concerns and complaints calls, 1600 calls. It incurred $69000.00 last year to operate these activities. John has performed an analysis and determined the following: How much total cost would be allocated to these key activities? (If necessary, round calculations to 2 decimal places, e.g. 12.25.) $66225.02$69000.0054048.00
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