Australian Mart (AM) operates at capacity and decides to apply ABC analysis to three product lines:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Australian Mart (AM) operates at capacity and decides to apply ABC analysis to three product lines: pastry and cakes, Dairy Products, and meat products. It identifies four activities and their activity cost rates as follows: Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance $100 per purchase order $ 80 per delivery $20 per hour $ 0.30 per item sold The revenues, cost of goods sold, store support costs, the activities that account for the store support costs, and activity-area usage of the three product lines are as follows: Particulars Fundamentals Revenue Cost of Goods sold Store support Pastry and Dairy Products cakes Meat Products 65000 50000 60000 35000 45000 45000 11000 15100 10500 Activities (Cost allocation base) Ordering (purchasing order) 30 25 13 Delivery (Deliveries) 98 36 28 Shelf-stocking (hours) 183 166 24 Customer support (item sold) 15500 20500 7900 Australian Mart (AM) operates at capacity and decides to apply ABC analysis to three product lines: pastry and cakes, Dairy Products, and meat products. It identifies four activities and their activity cost rates as follows: Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance $100 per purchase order $ 80 per delivery $20 per hour $ 0.30 per item sold The revenues, cost of goods sold, store support costs, the activities that account for the store support costs, and activity-area usage of the three product lines are as follows: Particulars Fundamentals Revenue Cost of Goods sold Store support Pastry and Dairy Products cakes Meat Products 65000 50000 60000 35000 45000 45000 11000 15100 10500 Activities (Cost allocation base) Ordering (purchasing order) 30 25 13 Delivery (Deliveries) 98 36 28 Shelf-stocking (hours) 183 166 24 Customer support (item sold) 15500 20500 7900
Expert Answer:
Answer rating: 100% (QA)
Answer To calculate the total cost and profitability of each product line well first allocate the st... View the full answer
Posted Date:
Students also viewed these accounting questions
-
What are ten multiple accounting questions that will be given during the interview for an entry accounting position?
-
Granger Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their...
-
Henderson Supermarkets (HS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their...
-
Which of the following statements about an acquiescence is correct? a. Acquiescences are published only for certain regular decisions of the U.S. Tax Court. b. The IRS does not issue acquiescences to...
-
What are the five types of filing status?
-
What is the Computer Security Act? Who does it impact? What problems has the act encountered?
-
Service company joint cost allocation The Sinbad Power Company is a large generation and transmission power company that sells electric power to many rural electric distribution utilities. In...
-
Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct...
-
Let t (t) for t [0, 1] be a parametric curve in R3. Prove that the curvature satisfies (t) = d dt (t) d2 dt2 (t) d dt (t)3
-
The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2019. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%,...
-
Think of a time when you were deciding whether to make a large purchase. What factors did you consider as you were making this decision? How might economic concepts like opportunity, cost, and...
-
Using the link below, http://www.wnyc.org/story/object-anyway/- How does this video (or set of videos) illustrate the concepts covered in the readings? How does this video (or set of videos) portray...
-
In Figure 1, determine the point (other than infinity) where the electric field is zero. Leave q1 = - 1.80 /C and 92 = 6.80 /C. 91 -1.00 m Figure 1 92
-
6. Given the following: the Prime is 8.1 %, the FED funds rate is 6.9%, 90 day T-Bills are yielding 5.2%, the average return on all stocks traded on the NYSE is 11.7%, what would be the nominal rate...
-
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments: Units in...
-
The Twombly Court gives no weight to the allegation of conspiracy in assessing the sufficiency of the complaint because "conspiracy" is a legal conclusion. Yet the Twombly Court approves of Form 11....
-
Si se mantiene la paridad de la tasa de inters y la tasa deinters nominal anual alemana es del 3 por ciento y la tasa nominalanual de los EE. UU. es del 5 por ciento y las tasas de intersreal 1 answer
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
Can a family member impair independence? Explain.
-
Would the receipt of a large percentage of total fees from one particular audit client impair the independence of an accountant in public practice? What are the circumstances where this is...
-
Ifan accountant is holding clients monies, under what circumstances may he draw from that account and to what extent?
Study smarter with the SolutionInn App