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1. Why was Dakota's existing pricing system no longer appropriate to be used in its current operating environment? Be as specific and as detailed



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1. Why was Dakota's existing pricing system no longer appropriate to be used in its current operating environment? Be as specific and as detailed as you can be based on the facts given in the case 2. The indirect resources are provided in the top row and the activities are provided in the bottom row. Fill in the names of the two other activities. Freight ($450,000) Warehouse Rent & Dep ($2,000,000) Warehouse Distribution Delivery Trucks Order Entry Personnel ($2,400,000) ($200,000) ($800,000) (1) Commercial Shipping (2)Process Cartons (3)Deliver to Desktop (4)Process Manual Orders (5)? (6)? 3. For each of the five indirect resource listed along the left side, type the percentage (e.g., 30%) of that resource that would be allocated to each of the six activities in the stage 1 allocation. For any given indirect resource, the percentages must add up to 100%. Also, there will be many percentages which will be zero since each activity does not make use of all five indirect resources. (Note, the activities marked as (5) and (6) are the answers from question 2. (5) (6) 1. Freight Commercial Process Desktop Shipping Cartons Deliveries Process Manual Orders Sum 100% 2. Warehouse Dep. & Rent 3. Warehouse Distribution Personnel 4. Delivery Trucks 5. Order Entry 100% 100% 100% 100% 4. Using the percentages from question 3, determine the total costs allocated to each activity. 5. Determine the allocation base for each activity and determine the amount of the allocation base for each activity. 6. Determine the allocation rate for each of the five activities.

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