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the time and costs associated with the service prior to commencing work. incorporating all of the company's indirect costs. She asks her accountant to create
the time and costs associated with the service prior to commencing work. incorporating all of the company's indirect costs. She asks her accountant to create an allocation system for assigning indirect costs to jobs. allocation rate). The accountant plans to use service hours as the cost driver in the allocation process and as the activity measure in the cost function. systems. Here are the results of her analysis: and the highest levels: Next month, Charlene expects the company to spend 440 hours solving 50 clients' computer system problems. REQUIRED [ROUND ALL PER-UNIT COSTS TO TWO DECIMAL PLACES.] Part A [ 5 tries; 5 points ] If the accountant uses the cost function based on her analysis of last month's costs, what is her estimate of total indirect costs next month? Tries 0/5 Part B [5 tries; 5 points] If the accountant uses the cost function based on the high-low method, what is her estimate of total indirect costs next month? Tries 0/5
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