Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fi xed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to more accurately allocate its costs in order to price its services competitively and profi tably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows.

Division	Time Usage (thousands of minutes)	Number of reservations (thousands)
Luxury	750	45.0
Resort	500	67.5
Standard	2,000	187.5
Budget	1,750	450.0

During the current year, the cost of the call center amounted to $700,000 for personnel and$500,000 for equipment and other costs.

Required
Write a short report to management explaining whether a single rate or dual rates should be used and why.

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A real-estate agent earned $6300 commission on a property sale of$210,000. What is her rate of commission?

A real estate agent received a $7,000 commission for a sale of$175,000. Find the percent of commission.

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A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $6 million. The following information is provided:

Required
What is the cost charged to each department if number of consultants is the allocation basis?

In order to break even, Kate Rowland wants to calculate how many flower arrangements she needs to sell for $24.95 each. She calculated that annual fixed running costs would be$12,350 and annual variable operating costs would be $15.45 for each arrangement. How many floral arrangements does Kate need to sell to cover her costs?

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fi xed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to more accurately allocate its costs in order to price its services competitively and profi tably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows.

During the current year, the cost of the call center amounted to $700,000 for personnel and$500,000 for equipment and other costs.

Required
Determine the allocation to each of the divisions using the following:
(1) A single rate based on time used.
(2) Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost).

Commonly in many organizations, including corporations, universities, and government agencies, if more than one employee from the organization is having a business meal paid by the organization, the most senior person (in terms of authority, not age) pays the bill and submits it for reimbursement.

Required
Could the employees get around this internal control?

Commonly in many organizations, including corporations, universities, and government agencies, if more than one employee from the organization is having a business meal paid by the organization, the most senior person (in terms of authority, not age) pays the bill and submits it for reimbursement.

Required
Is there an alternative internal control that might be effective?

Commonly in many organizations, including corporations, universities, and government agencies, if more than one employee from the organization is having a business meal paid by the organization, the most senior person (in terms of authority, not age) pays the bill and submits it for reimbursement.

Required
What type of internal control is provided in this example? Why is some form of internal control needed in this case?