Question

Munoz Air is a large airline company that pays a customer relations representative $15,975 per month. The representative, who processed 1,100 customer complaints in January and 1,310 complaints in February, is expected to process 21,300 customer complaints during 2018.

a. Determine the total cost of processing customer complaints in January and in February. (Do not round intermediate calculations.)

Answer 1

January cost allocated 9,900

February cost allocated 11,790

Step-by-step explanation:

We will allocate the representative cost over the expected customer complaints during 2018:

$ 15,975 per month x 12 months / 21,300 complaints per year = $9 per complain solved

January processing customer complaints expense:

1,100 customers x $9 = $ 9,900

February processing customer complaints expense:

1,310 customers x $9 = $ 11,790