Johnson Services (JS) repairs printers and photocopies for three cities in the Okanagan Valley region. JSs costs consist of the cost of technicians and equipment that are directly traceable to the customer site and a pool of office overhead. Until recently, JS estimated customer profitability by allocating the office overhead to each customer based on percentage of revenue. For 2021, JS reported the following results:

	Vernon	Lake Country	Kelowna	Total
Revenues	$260,000	$200,000	$322,000	$782,000
Technician & equipment costs	182,000	175,000	225,000	582,000
Office overhead allocated	31,859	24,507	39,457	95,823
Operating income	$46,141	$493	$57,543	$104,177

Tina Johnson, JSs new controller, notes that office overhead is more than 10% of total costs, so she spends a couple of weeks analyzing the consumption of office overhead resources by customers. She collects the following information:

Activity Area	Cost driver rate
Service-call handling	$75	Per service call
Parts ordering	$80	Per web-based parts order
Billing and collection	$50	Per bill (or reminder)
Customer database maintenance	$10	Per service call

	Vernon	Lake Country	Kelowna
Number of service calls	150	240	40
Number of web-based parts orders	120	210	60
Number of bills (or reminders)	30	90	90