|
Activity rate for processing sales orders = overhead cost/Total sales orders = 160,000/(500+30) = 160,000/530 = 301.89 per sales order |
|
Workshape Manufacturing has two dasses of distributors: JIT distributors and non-JIT distributors. The IT distributor places...
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 900 90 Sales calls 70 70 Service calls 350 175 Average order size 650 6,500 Manufacturing cost/unit...
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 1,000 100 Sales calls 70 70 Service calls 350 175 Average order size 850...
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 1,200 120 Sales calls 70 70 Service calls 350 175 Average order size 550...
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 700 70 Sales calls 70 70 Service calls 350 175 Average order size 750...
Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price one unit is $150. Round calculations to the nearest dollar. JIT Non-JIT Sales (in units) 765,000 114,750,000 2,700,000 765,000 $ 114,750,000 Sales Allocation $ 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments, Round the interim calculations to the nearest dollar. JIT Non-JIT $ X 5 293,636 X...
solving the "?"s
Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Manufacturing overhead Selling and administrative overhead Total activity Assemblin Processing Supporting g Units Orders Customer 50% 35% 5% 10% 45% 25% 1,000 250 100 units orders customers Other 10% 20% OfficeMart orders: Customers Orders red in total Number of filing cabinets ordered in total Selling price Direct materials Direct labor 1 customer 4 orders 80 units $595 $180 $50 Enter a formula into each of the cells marked...
Activity-Based Costing and Customer-Driven CostsLambo Auto Limited manufactures a limited edition luxury car that it sells through distributors. The company sells the cars to its distributors for $150,000 each and is very willing to accommodate the requirements of its distributors in order to increase volume. Even though the car sells for a high price, the small batch production methods result in only modest profits.In addition to the normal manufacturing and operating costs that result in a margin on each auto...
External Linkages, Customer Costing, Customer Profitability Emery Company sells small machine parts to heavy equipment manufacturers for an average price of $1.05 per part. There are two types of customers: those who place small, frequent orders and those who place larger, less frequent orders. Each time an order is placed and processed, a setup is required. Scheduling is also needed to coordinate the many different orders that come in and place demands on the plant's manufacturing resources. Emery also inspects...
Emery Company sells small machine parts to heavy equipment manufacturers for an average price of $4.70 per part. There are two types of customers: those who place small, frequent orders and those who place larger, less frequent orders. Each time an order is placed and processed, a setup is required. Scheduling is also needed to coordinate the many different orders that come in and place demands on the plant's manufacturing resources. Emery also inspects a sample of the products each...
You are an account manager at Owens & Minor, a distributor of hospital supplies. You have two customers, Alpha Hospital and Beta Hospital. Your value proposition is to provide each customer with high-quality hospital supplies at the time, in the order quantity, and through the sales channel (online orders or through salespeople) desired by the hospital. Below are your company’s direct product cost and activity rates, and each customer’s activity levels. Direct (Traceable) Cost per unit sold $3.46/unit “Other” Cost...