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Westover Travel offers travel packages using both air and ocean travel. Westover offers two packages, Tourist and Premier, that differ in the accommodations, class of

Westover Travel offers travel packages using both air and ocean travel. Westover offers two packages, Tourist and Premier, that differ in the accommodations, class of travel, and so on. Westover has a call center, which handles customer queries and complaints. The call center tracks the number of calls and the number of call-minutes for customers by the package they have purchased. Expected call center data for next month follow.

Call center volume: Tourist Premier
Number of calls 39,000 21,500
Number of call minutes 146,000 238,000

Call center costs: Total
Call-related $ 205,700
Call minute-related 49,920
Total call center costs $ 255,620

The call center at Westover uses a two-stage cost allocation system: It uses the number of calls to allocate call-related costs and the number of call minutes to allocate call minute-related costs.

Required:

  1. Compute the call-related overhead rate for next month.

Note: Round your answer to 2 decimal places.

  1. Compute the call minute-related overhead rate for next month.

Note: Round your answer to 2 decimal places.

  1. Compute the total call center costs allocated to the Tourist package.
  2. Compute the total call center costs allocated to the Premier package.

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