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Problem 1 2 - 5 5 ( Algo ) Cost Allocations: Comparison of Dual and Single Rates ( L 0 1 2 - 6 )
Problem Algo Cost Allocations: Comparison of Dual and Single Rates L
Manning Systems is a commerclal software vendor that sells billing and other financial software to companles around the globe. Manning operates a centralized call center for customer support calls. Costs assoclated with use of the center are charged to the division with primary responsibility for the client There are four geographical divisions: North America NA Central and South America SA Europe, and AslaPacific APAC The allocation is based on the length of time of calls made Minutes Idle time of the reservation agents and the fixed cost of the equipment are allocated based on the number of calls recelved Calls from clients in each division. Due to recent increased competition in the commerclal software business. Manning has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably, During the most recent perlod for which data are avallable, the use of the call center for each division was as follows:
During thls period, the cost of the call center amounted to $ for personnel and $ for equipment and other costs.
Required:
a Determine the allocation to each of the divisions using a single rate based on time used minutes
a Determine the allocation to each of the divisions using the dual rates based on time used for personnel costs and number of calls for equlpment and other costs
Complete this question by entering your answers in the tabs below.
Rea si Rean
Determine the allocation to each of the divisions using a single rate besed on time used minutes
Note: Do rot round intermeciare calculazions. Enter your enswers in dollars, not in thousands.
tableDivisionAllocated CostAsiaFacfic,Central and South America,EuropeNorth Amerca,
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