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1. 2. 3. Rush orders. Some customers want their jewelry quickly. The cost driver rate is $105 per rush order. Customer orders. The salespeople, designers,
1. 2. 3. Rush orders. Some customers want their jewelry quickly. The cost driver rate is $105 per rush order. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost driver rate is $50 per hour spent with a customer Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost driver rate is $24 per hour 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost driver rate is $32 per return visit. Data Table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price 02 05 06 Customer number Sales revenue Cost of item(s) Hours spent on customer order Hours on fittings Number of rush orders Number of return visits 01 03 04 $500 $ 4,000 $310 $ 2,800 $ 5,500 $ 700 $300 $ 2,400 186 $ 1,680 $ 3,300 $420 4 24 4 4 0 4 0 0
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