Exercise 6-52(Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1,2,3) Westover Travel offers...
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Exercise Algo TwoStage Cost Allocation and Predetermined Rates LO 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 callminutes for customers by the package they have purchased. Expected call center data for next month follow. tableCall center volume:,Tourist,PremierNumber of calls,Number of call minutes,Call center costs:,,Callrelated,$ Call minuterelated,,Total call center costs,$ The call center at Westover uses a twostage cost allocation system: It uses the number of calls to allocate callrelated costs and the number of call minutes to allocate call minuterelated costs. Required: a Compute the callrelated overhead rate for next month. Note: Round your answer to decimal places. b Compute the call minuterelated overhead rate for next month. Note: Round your answer to decimal places. c Compute the total call center costs allocated to the Tourist package. d Compute the total call center costs allocated to the Premier package. tablea Call relatedoverhead rate,,per callb Call minuterelated overhead rate,,per call minutec Call center costs allocated to Tourist,,d Call center costs allocated to Premier,,
Exercise Algo TwoStage Cost Allocation and Predetermined Rates LO
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 callminutes for customers by the package they have purchased. Expected call center data for next month follow.
tableCall center volume:,Tourist,PremierNumber of calls,Number of call minutes,Call center costs:,,Callrelated,$ Call minuterelated,,Total call center costs,$
The call center at Westover uses a twostage cost allocation system: It uses the number of calls to allocate callrelated costs and the number of call minutes to allocate call minuterelated costs.
Required:
a Compute the callrelated overhead rate for next month.
Note: Round your answer to decimal places.
b Compute the call minuterelated overhead rate for next month.
Note: Round your answer to decimal places.
c Compute the total call center costs allocated to the Tourist package.
d Compute the total call center costs allocated to the Premier package.
tablea Call relatedoverhead rate,,per callb Call minuterelated overhead rate,,per call minutec Call center costs allocated to Tourist,,d Call center costs allocated to Premier,,
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