ABC service Co. example used in class

ABC service Co. example used in class - $44,500 $175,500...

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ABC – Service Industry  e.g. Malopan Communications Inc.   (Indirect Support Staff-Web Hosting) GIVEN: cost data for last year Junior level support staff. ............. $150,000 Senior level support staff. ............. $70,000 Addressin connection  issues Addressing  design  issues  Totals Junior level support staff. ............. 25% 75% 100% Senior level support staff. ............. 10% 90% 100% FIND TOTAL ACTIVITY COST     Addressing  connection  issues Addressing  design  issues  Totals Junior level support staff. .............. $37,500  $112,500  $150,000  Senior level support staff. .............. 7,000  63,000  70,000  Total cost.
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Unformatted text preview: ..................................... $44,500 $175,500 $220,000 e.g. Junior staff are $150,000 and 75% of the Junior staffs’ time spent in addressing design issues: $150,000 × 75% = $112,500 Other entries in the table are similarly determined. COMPUTE & INTERPRET ACTIVITY RATES: Activity Cost Pools (a) Total Cost (b) Total Activity (a) ÷ (b) Activity Rate Addressing connection issues $44,500 20,000 connections $2.23 per connection Addressing Web design issues $175,500 10,000 Websites $17.55 per Website...
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ABC service Co. example used in class - $44,500 $175,500...

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