Baxter customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 12,800 calls and incurred costs of $377,600. Of these calls, 3,970 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:   Multiple Choice   $0.   $377,600.   $117,115.   $260,485.   $270,045

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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MC Qu. 5-47 Baxter customer service department follows...

 

Baxter customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 12,800 calls and incurred costs of $377,600. Of these calls, 3,970 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:

 

Multiple Choice
  •  
    $0.
  •  
    $377,600.
  •  
    $117,115.
  •  
    $260,485.
  •  
    $270,045
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