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1 4 of 29 (15 complete) As ABC analysis provided important insights. GS extends the analysis to cover three more product lines baked goods, milk

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1 4 of 29 (15 complete) As ABC analysis provided important insights. GS extends the analysis to cover three more product lines baked goods, milk and fruit juice, and frozen products. It identifies four activities and the activity cost rates st rates) support costs, and activity area usage of the three product lines are as follows n for the three product lines.) * Activity cost rates system to prepare a product-line profitability report for GS. (Round the perce Milk and Fruit Frozen aked Goods Juice Products Total 61,500 5 77.500 5 60,500 - X rating loss) Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance 36,000 10,800 48000 14 400 34000 10.200 $102 per purchase order $78 per delivery $21 per hour $0.22 per item sold Info for the three product lines -X % % % % Baked Goods Milk and Fruit Juice Frozen Products prepare a product-line profitability report for GS. (Round the percent Milk and Fruit Frozen aked Goods Juice Products Total 61,500 $ 77.500 5 60.500 Financial data 36.000 48.000 34,000 Revenues 61.500 5 77,500 $ 60,500 Cost of goods sold $ 36,000 $ 48,000 $ 34,000 Store support $ 10,800 $ 14.400 5 10,200 Activity area usage (cost driver) Ordering (purchase orders) 25 20 15 Delivery (deliveries) 90 35 30 Shelf stocking (hours) 190 180 40 Customer support (items sold) 13,500 17.500 8,000 Under its simple costing system, GS allocated support costs to products at the rate of 30% of cost of goods sold There are no bottle returns for any of these three product lines % % the ABC system in requirement 2 provide to GS managers? Print Done bly in profitability when ABC is used the product line uses in each activity area. In contrast used less of the total resources in each activity area. Hence, under ABC 1 4 of 29 (15 complete) As ABC analysis provided important insights. GS extends the analysis to cover three more product lines baked goods, milk and fruit juice, and frozen products. It identifies four activities and the activity cost rates st rates) support costs, and activity area usage of the three product lines are as follows n for the three product lines.) * Activity cost rates system to prepare a product-line profitability report for GS. (Round the perce Milk and Fruit Frozen aked Goods Juice Products Total 61,500 5 77.500 5 60,500 - X rating loss) Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance 36,000 10,800 48000 14 400 34000 10.200 $102 per purchase order $78 per delivery $21 per hour $0.22 per item sold Info for the three product lines -X % % % % Baked Goods Milk and Fruit Juice Frozen Products prepare a product-line profitability report for GS. (Round the percent Milk and Fruit Frozen aked Goods Juice Products Total 61,500 $ 77.500 5 60.500 Financial data 36.000 48.000 34,000 Revenues 61.500 5 77,500 $ 60,500 Cost of goods sold $ 36,000 $ 48,000 $ 34,000 Store support $ 10,800 $ 14.400 5 10,200 Activity area usage (cost driver) Ordering (purchase orders) 25 20 15 Delivery (deliveries) 90 35 30 Shelf stocking (hours) 190 180 40 Customer support (items sold) 13,500 17.500 8,000 Under its simple costing system, GS allocated support costs to products at the rate of 30% of cost of goods sold There are no bottle returns for any of these three product lines % % the ABC system in requirement 2 provide to GS managers? Print Done bly in profitability when ABC is used the product line uses in each activity area. In contrast used less of the total resources in each activity area. Hence, under ABC

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