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Active Customer Services Ltd uses a traditional activity-based costing system to assign £900,000 of committed resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel: BMAN21040 ACTIVITY Process sales order Process customer complaints Perform customer credit checks Required: TIME ESTIMATED COST DRIVER PERCENTAGE QUANTITY 55% 15,500 customer orders 15% 300 customer complaints 30% 2,000 credit checks 100% a)  Compute the activity cost driver rates using this system

Active Customer Services Ltd uses a traditional activity-based costing system to assign £900,000 of committed resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel: BMAN21040 ACTIVITY Process sales order Process customer complaints Perform customer credit checks Required: TIME ESTIMATED COST DRIVER PERCENTAGE QUANTITY 55% 15,500 customer orders 15% 300 customer complaints 30% 2,000 credit checks 100% a)  Compute the activity cost driver rates using this system

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Active Customer Services Ltd uses a traditional activity-based costing system to assign £900,000 of committed resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel:

BMAN21040

ACTIVITY

Process sales order
Process customer complaints Perform customer credit checks

Required:

TIME ESTIMATED COST DRIVER PERCENTAGE QUANTITY

55% 15,500 customer orders 15% 300 customer complaints 30% 2,000 credit checks

100%

  1. a)  Compute the activity cost driver rates using this system. 

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