FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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  1. Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:

Activities

Activity Cost

Billing error correction

$60,000

Cable signal testing

140,000

Reinstalling service (installed incorrectly the first time)

40,000

Repairing satellite equipment

50,000

Repairing underground cable connections to the customer

25,000

Replacing old technology cable with higher quality cable

175,000

Replacing old technology signal switches with higher quality switches

150,000

Responding to customer home repair requests

30,000

Training employees

80,000

Total

750,000

Prepare a Pareto chart of these activities.

 

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