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Stevens Air is a large airline company that pays a customer relation representative $4,000 per month. The representative, who processed 1,000 customer complaints in January and 1,300 complaints in February, is expected to process 12,000 customers complaints during 2012.
Required
A.Determine the total cost of processing customer complaints in January and in February.
B.Explain why allocating the cost of the customer relations representative would or would not be relevant to decision making.
Garrett Corporation holds as a long-term investment available-for-sale stock securities costing $72,000. At December 31, 2011, the fair value of the securities is $66,000. Prepare the adjusting entry to record the securities at fair value.
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