Question 5.2 Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average. Required Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.
Question 5.2 Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average. Required Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.
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 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Question 5.2
Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average.
Required
- Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.
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