Prestige Financial Credit Company Produces Two Styles of Credit Reports

question 121

Essay

Prestige Financial Credit Company produces two styles of credit reports: Individual and Corporate.The difference between the two is the amount of background information and data collection required.The Corporate report uses more skilled personnel because additional checking and data are required.The relevant figures for the year just completed follow.Total support service costs to be allocated are $3,200,000. $$\begin{array} { | l | r | r | } \hline \text { Allocation base } & \text { Indlvidual } & \text { Corporate } \\\hline \text { Data purchased } & \$ 40,000 & \$ 80,000 \\\hline \text { Research hours } & 24,000 & 30,000 \\\hline \text { Interview hours } & 1,000 & 10,000 \\\hline \text { Number of reports } & 16,000 & 3,000 \\\hline\end{array}$$ Required:
For each of the four potential allocation bases,determine the amount of support-service cost allocated to each type of report.Round all percentages to two decimal places.

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Definitions:

Respiratory Complications

Health issues affecting the lungs and breathing, possibly resulting from various medical conditions, surgeries, or external factors.

Passive Range Of Motion

Movements of a joint or limb that are fully carried out by another person or a mechanical aid without muscular exertion by the individual at whom the movements are directed.

Impaired Mobility

An inability to move the body or one or more limbs freely and with purpose.

Movement Repetition

The repeated performance of a motion or activity, often used in physical therapy or exercise to improve strength or skill.