Determine the total cost of processing customer complaints

Rundle Air is a large airline company that pays a customer relations representative $17,100 per month. The representative, who processed 1,190 customer complaints in January and 1,450 complaints in February, is expected to process 22,800 customer complaints during the year.

Required

Determine the total cost of processing customer complaints in January and in February.

Solutions

Expert Solution

a. Determine the total cost of processing customer complaints in January and in February.

Total cost of Representative for the whole year = $17,100*12= $205,200

Total number of customers complaints processed in a year = 22,800

Therefore, cost of Processing per customer complaints = 205200/22800= 9 per costumer complaint

Calculation of total cost of processing customer complaints:

Month Allocated Cost

So allocated cost in January = $9*1190= $10,710

And allocated cost in February = $9*1450= $13,050

So allocated cost in January is $10,710 and allocated cost in February $13,050

Christopher Mann answered 2 years ago

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