Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent...
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Accounting
Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 16,000 calls and incurred costs of $400,000. If 3,430 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division under activity-based costing system should amount to:
$314,250.
$0.
$85,750.
$400,000.
$25.
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