Stevens Services Is a Call Center That Specializes in Several

Multiple Choice

Stevens Services is a call center that specializes in several customer- and order-related activities. They are in the process of implementing Time-Driven Activity-Based Costing (TDABC) and have identified the following pertinent information:
They incurred $155,000 last year to operate the aforementioned activities. Assume that employees handled the following number of calls during the year: Initial Orders, 23,400 calls; Service Requests, 11,480 calls; and Customer Complaints, 9,872 calls. When comparing actual costs incurred to operate the activities to the allocated costs, what is the difference, and is it overallocated or underallocated?

A) $8,409.32 overallocated
B) $8,409.92 underallocated
C) $27,696.32 overallocated
D) $27,696.32 underallocated